People are making a big deal over this and causing stocks to rally. Here is the text.
“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth,” Powell told the Economic Club of New York in a speech being closely watched in what has become a volatile financial marketplace.
The chairman’s observation on rates in early October helped set off a rough period on Wall Street, after he said the Fed was “a long way” from neutral. Major averages dipped briefly into a 10 percent correction and worries grew that more rate hikes might meaningfully slow down the strong economic growth of the past two years.
This is important because it might possibly signal a pause by the Fed. But only an idiot would keep hiking rates after seeing 3,000 stocks drop by 20%. The negative wealth effect, caused by losses in stocks, must be factored in when analyzing the economy. We’re probably past the point of no return and this shit is already slowing.
This is the first of two magic bullets in Trump’s carnival gun, the second being a China deal. After the bullets have been expended, then reality will settle over Wall like a wet canvas and only then will we know the true nature of the market.
For now, rally ho.
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Atta boy Jerome.
Our retard president *hates* to look like he failed when he gets personally involved in a negotiation. So expect him to come away from the G20 meeting with Xi and announce something, anything positive to look like he is “winning.” Yes, thats what we’re resigned to. Analyzing our stock market trading based on the narcisstic personality of our commander in chief.
Nope. Now he uses Fed cover to double down on China.
Really no other choice. Housing market deteriorating. Equities looking squirrelly as hell. He would have to be a lunatic to hike rates here.
(Metro) Detroit entered the great recession two years before the rest of the country. Autos are a major cyclical good. The artificial stress put on the Big 3 by an overreaching UAW accelerated our recession path. If this week’s news that $GM is canning thousands, shuttering factories, isn’t the proverbial canary dying, I dunno what is. Metro Detroit is again in a recession and the majority of its residents don’t even know it, yet. Pagan Xmas overspending by the lower middle class will nail the coffin shut. -reporting from the ruinous lower eastside, RAUL
Fed passes baton to Trump for trade war with China, brilliant.
So let’s get this staright:
FED decides to raise rates at a slower rate
-> FED’s view of the economy is worse than it was a month ago
-> buy stocks?
I hate to tell you this, but falling interest rates are NOT a good economic sign for 2019
We are traders son.
Rally Ho Indeed !! Le Fly never lost his touch. Master of Wall Street and these here interwebs. You nailed this one Le Fly (cain tapping wood floor). Cocaine for everyone !!