The markets have not been kind to investors since the pandemic hit, so naturally, the announcement on Wednesday from the Federal Reserve was met with apprehension. Markets reacted cautiously as the Federal Reserve indicated that it would ease some of its stimulus measures in December, when it was expecting to roll back key programs. This news created doubts over whether the economic recovery can continue at the same pace, albeit with some timid gains in many segments. Despite the market turmoil, the Dow Jones Industrial Average managed to climb up 0.6% ahead of the Fed’s announcement. Also contributing to the market reaction were comments by Federal Reserve Governors that they are beginning to think about when and how to best exit their current policy stance. They expressed concern over the recent uptick in inflation, which could lead to additional uncertainty in the near-term. The Fed’s announcement spooked some investors out of the stock market, as some interpreted the shift in policy as a sign that the Fed may be preparing to tighten monetary policy. The volatile response to the Fed’s announcement highlights the uncertainty that remains in the market. Although the recovery is progressing, the Fed’s decision to discuss an exit from its current policy stance is causing investors to question the economy’s path. For now, investors will have to wait and see how the Fed will manage the economic expansion in the coming months. In the meantime, according to experts, investors should focus on tech stocks, global equities and other areas such as real estate and commodities which have good potential for growth despite the economy’s troubles.