Confused as to what the fuck is going on? The Fed minutes revealed they are, in fact, open to the idea of increasing the borrowing costs of the heavily indebted shit tier country we live in. On that news, rates dropped 2bps to 2.47% on the 10yr. Does that make sense?
The Fed on Wednesday released the minutes from the March 19-20 meeting, where it voted unanimously to not raise its benchmark rate.
Fed minutes stated: “Some participants indicated that if the economy evolved as they currently expected, with economic growth above its longer-run trend rate, they would likely judge it appropriate to raise the target range for the federal funds rate modestly later this year.”
But the minutes also said: “A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year.”
This is common sense thinking — but the ribald nature of the market has pushed rates even lower — just because. I suppose the path of maximum pain applies here. Market look good and as rates drop — old man stocks look even better.
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It’s kind of like if your feet were your hands and your hands were your feet, then your hands would smell.