What’s up QT? for AMEX:VTI by growerik

Quantitative Tightening started last Wednesday, June 1st, 2022. FOMC will be undertaking a “phased approach” of quantitative tightening measures beginning with a 3-month period of unwinding $30 billion of Treasuries and $17.5 billion mortgage-backed securities beginning on June 1, 2022. By September, 2022 these caps would increase to $60 billion and $35 billion, respectively. So $47.5 billion per month for the first three months. After this, the total amount to be reduced increases to $95 billion a month, with policymakers prepared to modify their stance should it be necessary to do in the light of economic and financial developments.

June $47.5B

July $47.5B

August $47.5B

September $95B

October $95B

November $95B

December $95B

Total QT 2022 = $522.5B

The nonpartisan Congressional Budget Office estimated that real gross domestic product, or GDP, will grow 3.1% in 2022, driven by consumer spending and demand for services, according to the report released Wednesday 5/25/22. It revised its estimates for GDP growth in 2023 and 2024 upward to 2.2% and 1.5%, respectively, but still below this year’s pace. Here’s what the CBO sees for the U.S. economy at the end of each year:

Real GDP: 3.1% in 2022, 2.2% in 2023, and 1.5% in 2024.
Inflation (measured by CPI ): 4.7% in 2022, 2.7% in 2023 and 2.3% in 2024.

Unemployment rate: 3.7% in 2022, 3.6% in 2023 and 3.8% in 2024.

Federal funds rate: 1.9% in 2022, and 2.6% in 2023.

Disposable personal income increased $216.6 billion, or 4.8 percent, in the first quarter 2022, compared with an increase of $20.1 billion, or 0.4 percent, in the fourth quarter. Real disposable personal income decreased 2.0 percent, compared with a decrease of 5.6 percent. Personal saving was $1.21 trillion in the first quarter 2022, compared with $1.39 trillion in the fourth quarter. The personal saving rate—personal saving as a percentage of disposable personal income—was 6.6 percent in the first quarter, compared with 7.7 percent in the fourth quarter.

Do your own due diligence, your risk is 100% your responsibility. This is for educational and entertainment purposes only. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Good luck and happy trading friends…

*3x lucky 7s of trading*

7pt Trading compass:

Price action, entry/exit
Volume average/direction

Trend, patterns, momentum

Newsworthy current events

Revenue
Earnings
Balance sheet

7 Common mistakes:

+5% portfolio trades, capital risk management

Beware of analyst’s motives

Emotions & Opinions

FOMO : bad timing, the market is ruthless, be shrewd

Lack of planning & discipline