Get ready to be destroyed. Fed’s Rosengren has been waiting patiently to destroy the economy for some time now. Apparently, his time has come, coinciding with the Trump inauguration. Bear in mind, this recent rally we’ve enjoyed, predicated upon some magical inflation present which has been absent for nearly a decade, will be poleaxed into submission once the Fed hikes in December.
The history books will attribute the current rally to the vainglorious President Obama and the crash to come to President Trump. In other words, it’s a fucking trap!
Rosengren is out this morning, talking greasy, letting the world know the Fed is gonna go in December.
“With the economy close to full employment and inflation nearing the Fed’s target, it was not surprising that the futures market’s probability of a tightening in December has been high – in the vicinity of 75% – with some volatility around the election,” he said. “Absent significant negative economic news over the next month, the market’s assessment of the likelihood of tightening in December seems plausible.”
According to the CME, the chances of a December hike now stand at 85%. Barring a massively bad economic data point, it looks like Trump will inherit an economy being torpedoed by the Fed, tightening, with the dollar already at 11 mo highs.
The dollar is in high demand.
Nothing has changed since Trump won the election, other than a hockey stick spike in copper and stocks. Credit has tightened with yields soaring and EM currencies are at 7 year lows versus the dollar. Has everyone already forgotten what happened to stocks last year after a December hike?
Trump is gonna have his hands full.
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BAC going to $40 back up the truck
not sure what I’m reading ..
025% long time preventivated hike..= market hard crash
?
i guess a pullback is ok..
no big need for editorial drama &suspence titles
Gibberish
“With the economy close to full employment”
I didn’t realize that real unemployment over 20% counts as nearly full employment.
Fed’s numbers Fed’s targets Fed’s markets
Rougher seas in the forecast for the Ark.
Do you think the Fed is playing politics? Or are they seeing the rally as a confirming signal to tighten?
One more… where do you think house prices will trend ?