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So it did nothing but " reaffirmed its view that the current 0 to 1/4 percent target range " as stated in your post !!!
Great find. WHAT A LANDMARK DICISION !!!
Try reading for understanding. 2014 marks the year when the Fed decided to start making moves that were less accommodating because the economy had strengthened enough. The Fed funds rate is only one way; ending QE is another.
Try reading for understanding. 2014 marks the year when the Fed decided to start making moves that were less accommodating because the economy had strengthened enough. The Fed funds rate is only one way; ending QE is another.
Interest rates are the hammer, not cheep talk.
The market responds to interest rate increases and the promise of more to come isn't cheep talk either.
The facts are Trump was right again when he said he was going to get hammered with interest rates while the last admin. got the cheep talk.
If high interest rates are deemed to be a problem, that is de-facto admitting that the economy is too weak to handle them. If the economy is as booming as Trump and his supporters keep claiming it is, then higher interest rates should not be a problem - right?
Interest rates are the hammer, not cheep talk.
The market responds to interest rate increases and the promise of more to come isn't cheep talk either.
The facts are Trump was right again when he said he was going to get hammered with interest rates while the last admin. got the cheep talk.
Ah poor Trump, he will never get to show how we would have handled becoming President during the worst recession since the Great Depression. Fed Funds rate under 2% is hardly hammering anything. The economy and the stock market has done quite well even with much higher rates.
All your Trumpian Alternative Facts won't change the fact that the FED began becoming less accommodative prior to Trump entering office. They did this by both raising the Fed Fund rate and ending and then starting to rollback QE.
Agreed - interest rates are NOT the problem - Fed has been raising them since 2016 and all through 2017. It was only in 2018 - after passage of the tax giveaway and hatching of the tariff debacle - did the market go south - not to reverse itself anytime soon.
Bloodbath tomorrow - again. Google and Amazon reported lower guidance after hours - FAANG drives the market - and they aren't doing it. Right now, NASDAQ futures off almost 3%, Dow off about 1%. Friday will give back all of today's recovery and then some. Too many negatives - ballooning deficits b/c of lousy tax bill, lower future guidance from a number of companies because of tariffs, lousy Treasury auctions (that means no one wants our debt) - and even slightly higher unemployment number today, which will continue to rise as companies feel the effects of the tariffs.
As someone up thread said:
Making America Go broke Again
Last edited by Ariadne22; 10-26-2018 at 12:47 AM..
Agreed - interest rates are NOT the problem - Fed has been raising them since 2016 and all through 2017. It was only in 2018 - after passage of the tax giveaway and hatching of the tariff debacle - did the market go south - not to reverse itself anytime soon.
Bloodbath tomorrow - again. Google and Amazon reported lower guidance after hours - FAANG drives the market - and they aren't doing it. Right now, NASDAQ futures off almost 3%, Dow off about 1%. Friday will give back all of today's recovery and then some. Too many negatives - ballooning deficits b/c of lousy tax bill, lower future guidance from a number of companies because of tariffs, lousy Treasury auctions (that means no one wants our debt) - and even slightly higher unemployment number today, which will continue to rise as companies feel the effects of the tariffs.
As someone up thread said:
Making America Go broke Again
The level of interest rates are more important than the direction for the market. 2 years ago they ranged from 0.22% for 2 month bills to 2.50% for 30 bonds. Yesterday they stood at 2.19% and 3.35% respectively.
3.35% is a much more compelling rate that 2.50% when comparing bonds to stocks. Especially since stocks have gotten so expensive since 10/16. The S&P yield is less than 2.0%, which in the past was a harbinger for market corrections.
Short-term rates are set by the Fed. Long term rates go up when the economy is strong and when fiscal policy is expansive, which it is now. Fiscal policy was going to loosen a lot anyway after President Obama and Congress agreed to end the spending caps.
I don't see any scenario in which fiscal policy will get less expansive. No one has any realistic plan to cut spending, which is on cruise control except for when they step on the gas.
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