16 December 2021 - Markets Rally on Fed Decision  | Westpac AGM Global markets were higher overnight, as US markets (S&P500 +1.6%) were trading lower but jumped late in the session following the US Federal Reserve’s decision. The Federal Reserve signalled a more aggressive unwinding of its monthly bond buying, and 3 interest rate hikes for next year, as well as 2 more for the following year, and another 2 for 2024. The Fed will be buying $60 billion of bonds each month starting in January, half the level prior to the November taper and $30 billion less than it had been buying in December. The move is to combat record high inflation now that unemployment rate forecast is sufficiently low enough. Interestingly it appears the market had anticipated this strong level of tapering (and hence a surprise market jump) and rate hikes with markets now given some certainty, and are now focused on company earnings, margins and growth. Gains were broad based with all sectors...