Well, hello, hello, hello, let's get episode three of crypto coors rock and rock and rockin what is going on everyone what a day it is pretty much a holiday here in the market. We are talking about the fed policy update. It is dropping in about five minutes. It's coming out and i want to get everyone a little prep for what's about to be going on, because this will have a massive impact not only on the equities market, but here for the crypto show.

It'll have a massive impact on the crypto market. So this is, it's all come. The fed decision is imminent. That's what cnbc's saying right now, yahoo's saying a similar thing.

What you basically need to know 2 p.m. The policy decision is coming out in a couple minutes and then at about 2 30 jerome powell will be doing a live press conference. Both of those things are influential we're going to watch the market in real time, the overall market as we're watching this video. Seeing what's going on i'll, have it below me just so you can be paying attention to what is or isn't going on, but here's what we're listening for a couple.

Things first thing the speed of which they want to increase their tapering. A lot of expectations for 30 billion a month, so we can stop all of this bond purchasing by march of 2022. On top of that, we are looking for any commentary. That's going to be related to interest rate hikes very, very important.

A lot of people are expecting a rate hike by june of 2022 and maybe potentially a second rate hike potentially big potential right there and then also - and i personally think this is a little bit of stretching, but maybe any commentary related particularly to how they want To handle their balance sheet, i think that's all going to be pretty important and we're going to get the first piece of this information. Now, i'm just closely watching the clock, it's going to be very very soon, so i'm excited i'm excited, i think, there's about to be a whole heck of a lot of volatility, a lot of volatility, because, depending on what the fed decides to do and how they Decide to do it, you're going to see a big big movement of money and whenever this is all happening, especially because of the relation to inflation. Of course, that's going to have a massive impact on the crypto market, especially bitcoin, being thought as an inflationary hedge, but then also just clear, impacts on the equities market as well, and then thus options, futures and everything in between. But we it's coming out.

It is coming out very very soon. Let me just make sure we are all ready for this. Let me open this up for us and switch over to this here. We are here.

We are it's gon na, be a roller coaster, so i have the three minute on the spy right here in the top left, but you can also see it a little bit. I guess over that way, uh right up there, and then we have the queues right under that and then we also have some bitcoin ethereum solana avalanche today, um bit of an interesting day, so we're seeing crypto actually creep up into the announcement and then so um Bitcoin bouncing off of 46.6 up to almost 48 000, actually broke above 48. ethereum bouncing off of three six five, oh up to three thousand eight hundred, so some people are being bullish into it, but we're about to find out the like the actual results here. Very, very soon, okay, we are less than a minute out uh.

Let's get ready on this. An accelerated tapering is not going to surprise anybody at this point. The key question the stock market participants want to answer is: how fast are they going to be hiking rates? This is very well studied throughout history. What kills bull markets is when the fed suddenly and aggressively raises rates, meaning every single meeting for many meetings and you have a weak economy.

The hope here is that the fed is going to be very slow, raising rates, meaning not every meeting and what's on the side of the bulls, is we have a very strong economy? If that happens, we get gradual rate hikes going into 2022 and into 2023 and the economy stays strong. The stock market will be able to handle that very, very well. The wild cards, of course, is how aggressive and number two the course of the omicron variant. I mean if you had to game out the reaction in the markets, and we love to do that here on cnbc, don't we rick, i mean it sounds like the markets overall would be flat to higher.

Potentially i mean as long as we don't get an extremely hawkish surprise um. Actually you know what we're gon na get straight. I'm sorry we're gon na get straight to steve leesman, because we do have here. We go uh reserves decision on interest rates, steve the federal reserve doubled the size of the taper up to 30 billion dollars a month, uh the federal reserve, uh adjusted the tape said it will adjust the taper further if warranted it did, leave the funds rate unchanged At zero, it said it's prepared to adjust the stance of monetary policy if warranted by the economic outlet.

It will maintain zero rates until maximum employment is achieved. Now the fed is no longer using the word. Transitory, doesn't call inflation transitory more on that in a second, but i want to show you what it looks for. The median fed forecast now looks for a 0.9 funds rate in 2022..

That's up quite a bit from where it was, and even more aggressive than we saw in our cnbc fed survey and for 1.6 for 2023. So call that what you want to call it three or four hikes next year, uh, sorry, two or three hikes next year and uh. Another three: the following year, fed sees 5.3 inflation this year, that's a rise from its prior forecast, but it does see it coming down in 2022 to 2.6 percent the fed saying supply demand imbalances already contributing to the elevated inflation level. It sees risk from the new variant to the economic outlook of the virus.

The decision was unanimous. Job gains have been solid. It said the unemployment rate has declined substantially. Now importantly, and maybe somewhat amusingly, the fed said it is no longer seeking inflation above two percent.

So doubling the taper, but keeping it zero and maintain it until maximum employment is achieved, kelly, um i'll, take it steve. It's melissa, um, just taking a look at the market reaction, initially knee-jerk reaction off the back of this, we do see the nasdaq down still by about seven tenths of a percent. We did see it dip a little bit lower on the back of it. The s p 500 down by just about three tenths of a percent not too much so far as we continue to digest and away to the interest, uh the interest, the statement and the the press conference.

Let's bring our panel back rick, i'm sorry. I interrupted you to get to the decision. Let's get to this, let's actually break down what is or isn't going on, okay, so the overall market right here at first red red red red now. Does that mean it has to stay red? No, so with it, the main one which i think almost everyone was predicting is the doubling of the tapering.

They were before november buying a hundred and twenty billion dollars worth of bonds. Basically, a government loan a month, they were buying these treasuries and also some other ones involved in there. But anyway, the number is 120 billion in november they cut it by 15 and they were trying to speed it up, and a lot of people were like hey, you're, gon na probably double the 30 and they're like yeah. Probably that's exactly what happened so that was just officially announced this number of 30 billion of the rate of taper, which was clearly the expectation is now what's also reality, but i did find the conversation to be.

I guess a little bit interesting there of what they were saying about how it's kind of open right now they might move it as in it could go up, maybe they're going to increase it to 35 40, maybe they're going to drop it to 25 to 20 Um - and that will be those updates - we're going to hear in like january february um, so i thought that was interesting, but nothing too surprising there. But what was surprising is the discussion relating rate hikes. So at one point in this year, in this calendar year, they were expecting a rate hike of maybe not happening at all and then, as things got a little bit unwieldy, unwieldy with inflation. They're, like okay, you're, probably going to do a rate hike and then all of a sudden, the predictions of when that rate hike would come through started to speed up and now a lot of people are pretty much targeting june, and maybe there might be a second One but right there, that commentary was maybe two or three rate hikes out of the gate.

Well, when people heard that right here, you saw that reaction, crypto went red and the spy, the cues all went red, but overall, this they're saying hey, we're actually not gon na, do it until we hit full maximum employment. So it wasn't like the fed came in and they're like yeah we're gon na do two or three we're already positive they're, saying yeah we're going to use that tool when it's appropriate. But the thing we care about right now is maximum employment and another way to say that is saying they are going to remain, not as dovish as they've been a little bit less dovish because they are increasing the rate of their tapering, but still pretty dovish until They see the employment, the world of the labor market a little bit stronger by whatever their own definition is, and right now at first, you could tell that the knee-jerk reaction was negative. People were like whoa.

What's going on with these rate hikes, are you gon na? Do two three: that's crazy, but now i think the market is obviously settling in real time. Saying nope, they're gon na keep the money printer going bur until we get to the employment. I guess realm that we really really want, and then it sounds like they're going to start talking about the rate hikes then now please, please understand this is just the policy announcement that came out just a couple of minutes ago. This is not the end of the day.

This is the start of fireworks, because jerome powell, the federal chair uh, he was speaking, he's doing a press conference in about 25 minutes, so at 2 30 p.m. There's gon na be more of an update. There's going to be questions from everyone that has fancy credentials and they all have very fancy check marks by their name on twitter, important people that don't wear santa hats in their basement. So obviously, i'm not going to be asking jerome powell any questions, but right now, let's see how this all truly plays out, because this is the start of fireworks from now until the remainder of the day, so about an hour 55 minutes high volatility right now.

The market's really really liking, what's going on they're liking, the comments related to lack of interest rate hikes until the economy, the job markets back to where they want it to be referring to unemployment. But i've been here before where this can be intensified by jerome powell's comments, or it can be undone by his comments. Nothing is guaranteed, yet we still now need to wait that extra 24 minutes uh. So, let's stand by on that because um, i think we are in for a power hour, a power hour and some change of some serious serious volatility, but thus far, i kind of like, what's going on all right, let's actually quickly click through so the spy in The queue is looking the same: uh amc popped up to 24 gme actually was having a very very nice day at one point getting up above 150.

um. How are we tesla popped on that news? Um? This was something that we covered in the discord that i got into some tesla calls. Actually, i should probably get out of said tesla calls because i'm sure there's a nice profit right now. So i have some live tesla call.

Some live amd calls, let's see where we are at, let's see where we are at on this. How does one see what they're up uh the tesla claw is actually currently up 50, so that's actually wild i'm gon na. Let it go a little bit, i'm feeling i'm feeling in the spirit, i'm feeling lucky. Obviously we're seeing bitcoin really move off of this news.

Bitcoin ethereum avalanche has been beautiful. 75 up to 99. solana. People are buying this news.

Uh, i love it. I love it. I love it. I love it so there are some important things i want to cover before the announcement in about 20 minutes now of when powell comes live.

So let me run through some of these specialty things that i think are of interest. We're not going to go too hard on the news today specific to crypto, because the main news is the fed, but i just want to share some things that i thought were noteworthy. 30. Oh excuse me hang on cappuccino break folks.

It's never a bad time to have a cappuccino: 33.5 billion worth of ethereum trapped in largest ethereum contract. This is the beacon chain and it is taking a lot of ethereum. What's crazy about it is it is trapped as in they're not going to be able to do anything until the hard fork, basically eth, 2.0. The contract in question is the ethereum 2.0 beacon chain staking contract launched in november of 2020.

This is crazy. This is absolutely crazy. Um nothing's, really gon na happen. At the start of december, ethereum developers called upon community members to test the merger um with ease 2.0.

The testing phase has been divided into three phases and what we're really waiting here is for it to make this big official movement ethereum's move from proof-of-work mining consensus to proof-of-stake um. For those of you who don't know, proof-of-stake is opposed to miners validating and securing it's going to be the owners, and it is considered widely considered to be a better consensus model. So i'm a fan of it. I myself am actually staking eth for eth 2.0 and i can't touch it.

I can't do anything with it whatsoever until eth2 eth 2.0 actually goes live. I just thought it was crazy that there's this many people who are so extremely confident in ethereum 2.0 just wanted to bring that up. I think it's a crazy story. Moving on nba topshop maker dapper labs commits 80 mil for startup acquisitions.

I wanted to bring this up because it relates to the nba top shops and flow black block chain um, pursuing a series app of acquisitions, and it seems like day over day we are seeing more crazy things go on in crypto acquisitions partnerships. I think it's pretty cool a regulatory following from december 9th showed that dapper labs has raised 6.5 million towards a 13.5 million goal in an equity offering we did not raise funds instead, as our ecosystem and portfolio continues to grow, we've made and will continue to make A series of acquisitions that we are choosing not to disclose at this time and the one that they already got a hold of they are describing as a young and scrappy company, somewhat related to basketball. We have a new, i guess, affiliate spokesperson for coinbase kevin durant. Has partnered with coinbase and will work with the exchange to push crypto's awareness now? Does this relate at all to everyone becoming crypto quadrillionaires overnight with coinbase's tech mess up? No, obviously not, but i'd still like to think that that was actually true.

Oh sorry, these fell off uh. This we're seeing a lot more athletes and celebrities partnering with the likes of coinbase crypto.com um, it's just so many so many you have matt damon um. You have tom brady, so many uh, the other one that we were talking about yesterday, was actually uh, steph, curry, steph, curry, and we. It also relates to the golden state warriors, but he is now a part equity owner of ftx stephen curious, but that stuff, in my humble opinion, is all positive.

It's all good! I like where it's going. It seems like more mass adoption, but it's not the easiest way. It's not the easiest way to pull all this stuff off, because we still also have some very notable regulatory concerns. So this has been going on today and yesterday so on stable coins, elizabeth warren, who is currently in the middle of a very hot spicy, dramatic fight with elon musk on twitter.

I recommend everyone check it out. Um she's saying that stable coins are a threat to the u.s feature and loomis is saying they're important for the u.s future um. So interesting debate relate, like, i guess, related to stable coins going on in capitol hill right now in real time. I've said this before, but i strongly believe that the year 2022 is going to be like a regulatory bloody mess of everyone fighting in and out like it's going to be not only for equities but also for crypto.

The upcoming calendar year. Lots and lots of regulation coming down the pipeline all right. Let's talk about ray dalio, he is a very well respected. Well, well, respected he's considered to be an investing wall.

Street legend warns, the fed's hands are tied and that higher u.s inflation is sticking around democracy. Maybe not that's a little bit hard right there, so obviously at first he's talking about the fed, but he does have some interesting commentary as it relates to crypto and that's the part i want to share with you, but the fed even knows like they. They had to decommission the word transitory because they're like oh, maybe, oh no did i get frozen. Hello looks like i'm back.

I think i'm back refresh yeah. If you refresh we're all good. I don't. I don't know: what's going on with youtube these days lately, but anyway, ray dalio warns, uh the fed, and then i want to talk about crypto.

Really quick, um he's worth 20 billion wall street legend he founded and is still running. Bridgewater associates massive massive amount of money under management, but in terms of bitcoin uh. He did this recent interview right here. So here was the question he was prompted with bitcoin and other cryptocurrency also is politicized.

Crypto has become a political statement as much as a way to make and lose money. There's a lot of money chasing all sorts of things crypto among them. It's been an amazing accomplishment for bitcoin to have achieved what it has done from writing. That program not being hacked having it work and having it adopted the way it's been, i believe in the blockchain technology, there's going to be that revolution, so it has earned credibility, he's not an expert on bitcoin, but he thinks that there's some merit as a small Portion of a portfolio for me, i actually have quite a bit of not only just specifically bitcoin but crypto at large, because i do think technology, society and culture are all heading that way.

Bitcoin is like gold, though. Gold is well established, blue chip alternative to fiat money. That is true right now, but i think, as time goes on, people are going to realize that not only do you have this store of value, aka bitcoin, but the benefits as in that part is equivalent to gold, but then bitcoin itself has the kicker of being A pretty impressive technology, however, bitcoin has a number of other issues. If it is a threat to governments - and this is so important - it will probably be outlawed in some places when it becomes relatively attractive.

It may not be allowed in all places. I don't believe that central banks or other institutions will have a significant amount in it, so ray dalio, a guy who's been around the block a couple times calling out what a lot of crypto maxies have been saying from the start is one of the biggest threats They have left is just governments being against it, because in a certain way it could be argued that it represents government losing power. It's not a secret that many governments throughout the world they like to be like they like to have like a microscope up. All of its citizens asses they like to know exactly.

What's going on all the time and one of the ways they can do, that is by controlling the ebb and flow of currency and tracking at all. It wasn't that long ago that they were trying to track even 600 transactions in the u.s, which is insane and right now the fact that crypto is really kind of trying to run on a decentralized platform. That's a threat to the current power imbalance in the world and we'll have to see how that's playing out, obviously crypto. It's a little bit more relaxed in the u.s relative to something like india or china.

But we have to sit back and make sure your voices are heard. Make sure when there are comments open to the public, make sure you're voting for people who truly align with your own ideals, because this is very, very important, stuff, extremely important. Stuff um - and i thought this commentary was kind of interesting because sometimes we have ceos of like jp morgan who are like. I hate bitcoin, it's not a thing.

How do we even know there's only 21 million, and then you have people who are coming from. I guess the same cohort and they just view it a little bit differently of like no like this actually might be like a whole new thing that people need to pay attention to. So just wanted to share those comments with you. Let's check on how everything's doing it looks like the spy is still looking very, very strong tesla.

I want to see that back above 9 56, the queues going up. We have some money pivoting back into what would be considered high risk asset classes, money pivoting back into crypto pivoting back into the queues which, overall, whenever the queues go up, that's probably going to be helping the overall market, because tech companies happen to be some of The biggest companies on the planet - this is this is exciting. This is man man, oh man, you get some of that money flowing right back into high risk high risk flowing back into some high risk right there. You got some higher risk right there.

What a day? What a day um, so we have about 12 minutes to go and with that and i'm just referring until powell actually starts speaking, which we're going to see even more volatility. So the way this stuff typically plays out is volatility at first right from the announcement things cool off a little bit and then pal starts speaking and based on the question and his answers to said questions you get even more insanity. Sorry i want this to flip over this way. This is like the lucky side for it to be, and let me zoom out here a little bit.

Man, man, oh man, uh. So this is exciting stuff for sure we know, avalanche has been crushing, it avalanche has basically bounced off of the mid 70s. All the way back up to 100 avalanche, doing exceedingly well right now, and some people are calling out amd. Where is my amd 140 uh? So both amd amd was a call i made publicly this morning for everyone, and then tesla was one that i made in the discord uh.

So both of those doing doing pretty well right now, uh hood was in and out that one was a very quick one. So looks like we might go three for three today, but the exciting thing is really what we're i'm seeing a lot of jumping over here is, if you open up your crypto portfolio, it's probably looking pretty good right about now. It's probably looking amazing right now uh. How are we doing it? Yeah i mean i myself, i'm seeing a nice little pop there.

So all right, let's see how this all plays out ethereum i mean i would feel awesome if this got back above 4, 000 and in terms of bitcoin. I want this back above 50. 000, such a key technical level. If we take a look at the bigger picture on these things, which i think could be helpful at this moment in time as we're just waiting for pal to really get going, this is the daily chart.

Let me drop the bollinger or yeah the bollinger channel there. Those volatility bands what i'm looking for is for bitcoin to get basically back above 51, 52 000 and to hold this is a very low rsi. Reading the relative strength index. It's oversold and i'm hoping at this point that we have a little bit, hopefully bullish divergence.

It has gone lower, but the rsi is slightly higher. I just want to see this clear downward trend start to reverse and i'll feel confident about 51.52. A break above 52. is gon na, be a solid signal that i think a lot of big money.

A lot of whales are gon na start to capitalize on once again, i think that line in the sand is pretty much 51, 52, 000. So we'll see, and even right now in terms of risk reward, your risk is 2 000, whatever percentage that would be to maybe writing this up to 60 64.. We'll have to see how this plays out. There's more volatility incoming in about nine minutes, but ma'am uh in terms of ethereum aetherium did have this wedge breakdown, but then, because of this fan announcement we might be getting back up into this wedge and with this one i would particularly not just watch the break Of 4000, which does roughly align with this trend line but watch 4 200.

ethereum is actually my biggest holding and then followed by ethereum is bitcoin under bitcoin. It is solana under solana, it is polygon, slash, manic and then under that i have cardano and then tied across the board. Uh, ah not tied. I have more loop ring and then, under that i have sheep and doge uh.

We have some al goran in there. Um, the one that i'm not in right now that i wish i just had a pile of it like a king's ransom of it is avalanche. I wish i had a lot of avalanche right now, solana, honestly, it's so much my third biggest holding and that's even after this fall off from 260., so that one's been performing pretty well. For me, oh man, i get so mad avalanche - looks like it's about to have a breakout right now, i'm curious out of all those ones that i just listed all those like, let's say the top 10 on coin market cap.

Let me know in a comment like what's your favorite um. I definitely obviously want to spend more time discussing the ones that everyone in chat happens to be like particularly tracking, particularly following um. So definitely, let me know, hang on i'm bringing up this chat also over there on rumble, i'm hoping that aws has been taking care of its issues as the twitch backup. All of those doge hmr v-chain, avax, crow, sheep soul, eat avax, eth, sheep, eath, okay.

So a lot of eath fans matic a little bit in there seems pretty dispersed, though we have a pretty solid group here, pretty solid group of people very diverse interests, all right, and i actually i'm a fan of that hey twitch - is back up all right twitch. It sounds like aws kind of figured out some of their problems, so shout out to the twitch fam, all right so avalanche. Obviously, looking good how's the market holding right now taking a little bit of a breather, all right, definitely a little bit of a breather. But let's get ready: let's get ready, we're a couple minutes out crow, a lot of people interested in crypto.coms.

Let me actually see how crow's been doing uh crow usd 54 cents um. So it is at this support. Uh 50 cents, not it's obviously key psychological level and also a key technical level. But with this one the run-up's been doing well, because this is crypto.com's own currency and it did very very well when it got more of that name.

Recognition from the likes of buying the naming rights to the staples center, so that was a lot a lot of excitement since then, it's been selling off but look for that base and i think if this gets back above 65 like you might really get some movement In there, you really could get some movement. I want to quickly give you an update on how my dow protocol little project's been going, and yes, it takes time, i'm just curious how it's all reacting to the i guess quote-unquote pump going on in the market. Right now, with just like bitcoin having a nice swing in ethereum overall uh, it's roughly the same as yesterday, so i'm up, but i'm just barely up and i've started this project on the 8th. So, what's that mean that where you've been in this for about six full days now and something's been going on with it, but we're up, but i've definitely been up more, so it just needs more time.

This is not the thing where you're like actively in and out. I think that volatility could just drive you absolutely insane. So i'm letting a little bit more time play out letting a little bit more um. I guess apy build up just so i don't have to withstand all the insanity of high volatility crypto my boys and i made a coin under stellar.

We basically add liquidity and we're adding new pathways daily dme on discord. Bro we'll talk about it. It's been about a year now my twitter got bam. Oh tp, i didn't know that your twitter had been men yeah.

We could chat on discord, uh check out k-l-i-m-a um. They are back tokens with insane apy for staking, so i'm familiar with ohm, because that is the protocol that kind of got it all started. But if i'm being completely honest with all of you, i'm a week into my whole dow protocol experience and knowledge uh, i it's new for me - it's very very much new for me, so i'm i'm learning day over day, i'm spending hours on it every single day. Talking to people who know far more about it than i do just to kind of learn um, it seems like it's one of those things and you're going to find this quite a bit in crypto, quite a bit in crypto that there are a lot of good Opportunities, but you have to sift through a lot of crappy projects.

A lot of crappy rug pulls um whenever there's opportunity, there's also going to be opportunity for scams and scam artists um tomorrow we're going to talk more about what was going on with metamask metamask. Had some issues um yesterday so we'll be talking about that tomorrow and just some weird things going on there: um crazy stuff, crazy, crazy stuff uh. So with that hang on uh, satima inu and sheba no bee man, you killed it yesterday prop stress level. At a thousand percent trying to get all together on my end, shout out jay brown uh.

What is your amd exit? I would love to see. Amd react to 145. happy hump day. I know this isn't really, but it should be a standard that a fun cats need to be a prerequisite for making big decisions ar tm next generation.

A rtm token.com looks good. What do you think i'd have to look into it? I'm more than happy to write it down, but with these um, some of them like require quite a bit of serious due diligence. What's going on with the data, it seems like it's having like a small freak out over here. Definitely a small freakout uh a question for me just so.

I have a better idea: um because we're we're working it out and we're kind of seeing what gets traction and what doesn't get traction as i'm just burning a little bit more time till the fed starts. Speaking uh, we actually have two minutes so very very quickly in terms of the world of crypto. What are you most interested in? Do you want me to do deep, dives into, like particular tokens coins protocols? Do you want me to do interviews with crypto experts? Do you want me to do interviews with people who made wild yolo trades and made a lot of money or lost a lot of money? Do you like me, covering the daily news uh, do you like a mixture of all that some interviews, some new coins um the specifics of these coins, the specifics of protocols uh? Do you just want me to do research and find like share where i think, there's good opportunity, all the above deep dive interview, some experts, deep dive, yellow trades, deep dives, all the above? Yes, some just said: yes, all right! A mix, a mixture is fine. Okay, we could do it, we can definitely get a mixture happy too happy to, and i appreciate that feedback seriously.

It helps so much. It's always good to know what the community uh is particularly interested in obviously sometimes you're a little bit too close to the forest. Uh all you're doing is seeing an individual tree, so i appreciate this feedback matt. You can look at prestige worldwide.

I hear it's about to blow up jackie, it better be none of that. I want more ducks all right. Let's see what is going on here. Let me do a quick reload, all right, duh.

2. 30.. We are seconds out 2. 30.

2. 30. 2. 30.

How many seconds is that all right? It should be starting like now like right now and now: let's do it, let's be timely! All right! Let's not be timely, um, someone said: what do we have? What do we have here? Uh 41. Someone said: trey tweeted, i didn't. I don't see it. Let me see if i could track this down all right.

Is he going? They had some interesting music. All right. Come on come on come on give us what we want give us what we want. Someone else is saying that trey just tweeted is my like twitter behind uh trey.

Why did you pull out of the apes together, doc whoa good afternoon at the federal reserve? We are strongly committed to achieving the monetary policy goals that congress has given us maximum employment and price stability. Today, in support of these goals, the federal open market committee kept interest rates near zero and updated its assessment of the progress of the that the economy has made toward the criteria specified in the committee's forward guidance for interest rates. In addition, in light of the strengthening labor market and elevated inflation pressures, we decided to speed up the reductions in our asset purchases, as i will explain, economic developments and changes in the outlook warrant, this evolution of monetary policy, which will continue to provide appropriate support for The economy economic activity is on track to expand at a robust pace this year, reflecting progress on vaccinations and the reopening of the economy. Aggregate demand remains very strong, buoyed by fiscal and monetary policy, support and the healthy financial positions of households and businesses.

The rise in covet cases in recent weeks, along with the emergence of the omicron variant, pose risk to the out risks to the outlook. Notwithstanding the effects of the virus and supply constraints, fomc participants continued to foresee rapid growth, as shown in our summary of economic projections. The median projection for real gdp growth stands at 5.5 percent this year and four percent next year, amid improving labor market conditions and very strong demand for workers. The economy has been making rapid progress toward maximum employment.

Job gains have been solid in recent months, averaging 378 000 per month. Over the last three months. The unemployment rate has declined, substantially falling six tenths of a percentage point since our last meeting and reaching 4.2 percent in november. The recent improvements in labor market conditions have narrowed the differences in employment across groups, especially for workers at the lower end of the wage distribution, as well as for african americans and hispanics labor force.

Participation showed a welcome rise in november, but remains subdued in part reflect reflecting the aging of the population and retirements. In addition, some who otherwise would be seeking work report that they are out of the labor force because of factors related to the pandemic, including caregiving needs and ongoing concerns about the virus. At the same time, employers are having difficulties filling job. Openings and wages are rising at their fastest pace in many years.

How long the labor shortage will george's will persist is unclear, particularly if additional waves of the virus occur. Looking ahead, fomc participants project the labor market to continue to improve with the median projection for the unemployment rate declining to 3.5 percent by the end of the year. Compared with the projections made in september, participants have revised their unemployment rate projections noticeably lower for this year and next supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation, in particular, bottlenecks and supply Constraints are limiting how quickly production can respond to higher demand in the near term. These problems have been larger and longer lasting than anticipated, exacerbated by waves of the virus.

As a result, overall, inflation is running well above our two percent longer run goal and will likely continue to do so well into next year, while the drivers of higher inflation have been predominantly connected to the dislocations caused by the pandemic. Price increases have now spread to a broader range of goods and services. Wages have also risen briskly, but thus far, wage growth has not been a major contributed contributor to the elevated levels of inflation. We are attentive to the risks that persistent, real wage growth in excess of productivity could put to upward pressure on inflation.

Like most forecasters, we continue to expect inflation to decline, to levels closer to our two percent longer run goal by the end of next year. The median inflation projection of fomc participants falls from 5.3 percent this year to 2.6 percent next year. This trajectory is notably higher than projected in september. We understand that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials like food, housing and transportation.

We are committed to our price stability goal. We will use our tools both to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched. We will be watching carefully to see whether the economy is evolving in line with expectations. The fed's monetary policy actions have been guided by our mandate to promote maximum employment and stable prices for the american people.

In support of these goals, the committee reaffirmed the zero to one quarter percent target range for the federal funds rate. We also updated our assessment of the progress the economy has made toward the criteria specified in our forward guidance for the federal funds rate with inflation, having exceeded two percent for some time. The committee expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent with the committee's assessments of maximum employment. All fomc participants forecast that this remaining test will be met next year.

The median projection for the appropriate level of the federal funds rate is 0.9 percent at the end of 2022 about a half percentage point higher than projected in september, participants expect a gradual pace of policy firming with the level of the federal funds rate generally near estimates Of its longer run level by the end of 2024, of course, these projections do not represent a committee decision or plan and no one knows with any certainty where the economy will be a year or more from now. At today's meeting, the committee also decided to double the pace of reductions in its asset purchases. Beginning in mid-january, we will reduce the monthly pace of our net asset purchases by 20 billion dollars for treasury securities and 10 billion dollars for agency mortgage-backed securities. If the economy evolves broadly, as expected, similar reductions in the pace of net asset purchases will likely be appropriate each month, implying that increases in our securities holdings would cease by mid-march a few months sooner than we anticipated in early november.

We are phasing out our purchases. More rapidly because with elevated inflation pressures and a rapidly strengthening labor market, the economy no longer needs increasing amounts of policy support. In addition, a quicker conclusion of our asset purchases will better position policy to address the full range of plausible economic outcomes. We remain prepared to adjust the pace of purchases if warranted by changes.

Changes in the economic outlook and even after our balance sheet stops expanding our holdings of securities will continue to foster accommodative financial conditions. To conclude, we understand that our actions affect communities, families and businesses across the country. Everything we do is in service to our public mission. We at the fed will do everything we can to complete the recovery and employment and achieve our price stability goal.

Thank you. I look forward to your questions all right, all right, all right, so nothing really too groundbreaking in that uh. The main thing is basically, they are looking to end the tapering by mid-march which, as he said, their expectation in november was different. They thought it would actually take longer.

Of course, they could change this based on the state of the economy as we get closer and closer, but they are looking they're they're, trying as hard as they can to get in in front of inflation uh. As of now, the numbers coming in at 5.3 percent, their expectations are to lower that to 2.6 percent next year. Um we're going to see how this all plays out. It's it's a very, very difficult balancing act given the insanity of rona and what that had to lead to for the economy.

It's a big big balancing act. There was no commentary. Maybe i am assuming someone's going to ask questions of rate hikes. That is more.

They want to see a more robust, stronger economy before they go back and using that tool of raising interest rates, so their first tool is tapering. Then they're going to be looking at interest rates, and i would assume, after that, that's when they're probably going to start to looking into the unwinding of basically their balance sheet. You had a little bit of commentary of their securities and like what they're going to be doing with that. A lot of it seems to be in flux.

The hardcore thing that is like kind of shown right now opposed to kind of wishy-washy, is increasing. The rate of tapering we're looking at mid-march. That's the news, that's the headline, no clear updates! Quite yet, as it relates to the interest rate hikes, but we're probably going to be finding out more month over month. So, let's sit back, relax enjoy the federal reserve pump right now the fact that they're going to be remaining a little bit more dovish and no specific commentary on those rate hikes if they did discuss it and if they started dropping, dropping hey two or three: the Market would be behaving a little bit differently right now, and by that i mean in the exact opposite manner, but right now, in the short term, people are buying up the fact that we don't have to worry about these rate hikes and it looks like the the Money printers back on - and by that i mean these, things are getting pushed higher and higher and higher apple 178.

What is today, wednesday man? It looks like things are going to the upside going to the upside, barring any crazy responses to particular questions that are going on in the real time. It looks like things are currently on the up and up in both the broader equities market, but also in the broader crypto market, so who knows uh the the full-on santa rally. I knew i wore the santa hat for a reason today, but it feels like maybe that santa rally is back on track folks. That is what i have for you today for this crypto stream in about 15 minutes a little bit over 15 minutes.

We will be together for the power hour stream a little bit more equities related, and i have some updates for you: uh related to some funny things that i think are going on between elizabeth warren and elon musk. So we will be talking about that and we will watch the equities market close out the day for power hour once again. That's in about 15 minutes. There should be already a stream waiting for you on youtube.

If you want to watch it there, if you're watching on rumble, i will be setting that up right after this overall. Thank you for your support. This is episode three of crypto cores in the books. Your support, it means more to me than i could ever possibly articulate i'll catch you in a few moments.

Hey, it looks like we might be closing out on a pretty positive note and as always from me and chair best of luck in the markets, you.