We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The latest Fed minutes came in dovish which indicates that officials may not be ready to go for tightening the policy as yet. According to the minutes of the U.S. central bank's June policy meeting, the Fed officials felt considerable improvement on the economic recovery "was generally seen as not having yet been met," though they are watchful of the inflation concerns.
The minutes indicated that the Fed officials are worried about new inflation risks but still-relatively-high unemployment has been keeping them from tightening the monetary policies. After its meeting and statement last month, investors started to fear that the Fed would tighten the policy more quickly than previously expected.
The minutes led the growth-oriented Nasdaq to a new high as rates are likely to remain lower for longer. Moreover, fears of delta variant of COVID-19 are also causing higher demand for the tech stocks as these are winning ones amid stay-at-home trend. Since the Nasdaq is tech-heavy, low rates should boost this fund.
If rates remain low and inflation remains relatively higher, investors can bet on the ETFs like Invesco QQQ (QQQ - Free Report) , SPDR S&P 500 ETF (SPY - Free Report) , iShares Russell Top 200 Growth ETF (IWY - Free Report) and Materials Select Sector SPDR ETF (XLB - Free Report) .
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
ETFs to Play on Dovish Fed Minutes
The latest Fed minutes came in dovish which indicates that officials may not be ready to go for tightening the policy as yet. According to the minutes of the U.S. central bank's June policy meeting, the Fed officials felt considerable improvement on the economic recovery "was generally seen as not having yet been met," though they are watchful of the inflation concerns.
The minutes indicated that the Fed officials are worried about new inflation risks but still-relatively-high unemployment has been keeping them from tightening the monetary policies. After its meeting and statement last month, investors started to fear that the Fed would tighten the policy more quickly than previously expected.
The minutes led the growth-oriented Nasdaq to a new high as rates are likely to remain lower for longer. Moreover, fears of delta variant of COVID-19 are also causing higher demand for the tech stocks as these are winning ones amid stay-at-home trend. Since the Nasdaq is tech-heavy, low rates should boost this fund.
If rates remain low and inflation remains relatively higher, investors can bet on the ETFs like Invesco QQQ (QQQ - Free Report) , SPDR S&P 500 ETF (SPY - Free Report) , iShares Russell Top 200 Growth ETF (IWY - Free Report) and Materials Select Sector SPDR ETF (XLB - Free Report) .