Powell wants asset tapering to begin this year
On Friday, Federal Reserve Chairman Jerome Powell said that he was one of the majority of Fed officials who believe the central bank can taper bond purchases this year.
In his Jackson Hole speech, Powell revealed that at the FOMC’s July meeting, he, along with most of the participants, opined that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.
Powell said that the Fed's "substantial further progress" test on inflation had been met, adding "clear progress" had been made on a return to maximum employment.
The Fed is currently buying $80 billion of Treasurys and $40 billion of mortgage-backed securities each month.
Powell did not mention when the Fed might formally announce the taper. Officials are divided about whether to announce it at their meeting on Sept. 20-21 or wait until November. The Fed chairman also didn’t specify the pace of the tapering.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
GOVT's RSI Oscillator recovers from oversold territory
The RSI Oscillator for GOVT moved out of oversold territory on October 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 38 similar instances when the indicator left oversold territory. In 21 of the 38 cases the stock moved higher. This puts the odds of a move higher at 55%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on GOVT as a result. In 43 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 51%.
The Moving Average Convergence Divergence (MACD) for GOVT just turned positive on October 08, 2026. Looking at past instances where GOVT's MACD turned positive, the stock continued to rise in 27 of 50 cases over the following month. The odds of a continued upward trend are 54%.
Following a +0.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where GOVT advanced for three days, in 128 of 290 cases, the price rose further within the following month. The odds of a continued upward trend are 44%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOVT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 49%.
GOVT broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for GOVT entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Industry description
Advertisement
General Information
Category IntermediateGovernment
Advertisement