US GDP Amazes Despite Omicron, Here's Why.

Fed ready to 'digest' even an early 2022 with negative growth, priority is to scratch inflation

Three ideas clearly stated. Which open a new path for markets and monetary policy. 

Here, in summary, is the comment by Luca Tobagi, Investment strategist of Invesco, after the meeting of the Federal Reserve where Jerome Powell gave the line for the next few months. 

The markets reacted badly at first, considering the statements "aggressive", but - according to Tobagi - everything will be metabolized. And the accumulation of shares when prices drop a little is still a correct investment strategy to keep. And here are the three most important things said by Powell, which will mark the present and the near future.

First: even if no decision has been made. the way was opened for a first hike in March 2022 and monetary policy is once again the main instrument on the table of the US central bank.

Second: the Fed has made it clear that the reduction of the central bank's balance sheet will not take place by selling the securities that are in the portfolio, but not by reinvesting the proceeds of the securities that will mature. An important point to "calm down" the markets.

Third: The Fed gives importance to both "legs" of its mandate: on the one hand, rates and inflation, on the other, the pursuit of full employment. Too high a cost of living hurts workers. The dual mandate is always the North Star.