Skip to comments.Fed officials fear financial market 'imbalances' and possibility of 'sharp reversal' in prices
Posted on 11/22/2017 11:12:44 AM PST by John W
Federal Reserve officials expressed largely optimistic views of economic growth at their most recent meeting, but also started to worry that market prices are getting out of hand and posing a danger to the economy.
Minutes from the Oct.31-Nov. 1 Federal Open Market Committee meeting indicate members with almost universally positive views on growth the labor market, consumer spending and manufacturing all were showing solid gains. While there were disagreements on the pace of inflation, and even a discussion about changing the Fed's approach to price stability, the sentiment otherwise was largely positive.
Moreover, they said the picture could get even better if Congress lowers corporate taxes as part of the reform plan making its way through the Senate now.
"In their discussion of the economic situation and the outlook, meeting participants agreed that information received since the FOMC met in September indicated that the labor market had continued to strengthen and that economic activity had been rising at a solid rate despite hurricane-related disruptions," the minutes stated.
However, when it came to evaluating market conditions, the talk took a more cautious tone.
(Excerpt) Read more at cnbc.com ...
Yeah, and 120/80 blood pressure is now called "pre-hypertensive". Thanks John W.
2) I do remember the "media" accusing W of trying to "talk down" the economy during the 2000 election.....
I hope they’re right...so I can load up more stocks.
The thing is the equity auction market is not the economy. It really is just a vehicle to exploit the economic gains of the economy. The whole problem with the Fed to begin with has been its obsession with the equity markets and its unofficial role of keeping market makers rich. This has been at the expense of Main Street for decades now.
We need to let interest rates float naturally and get the damn central banks out of the mix.
This is true. Been awhile since that was allowed to happen.
Lots of money to be made if one can spook the markets... love that shorting... (that said, I don’t believe this - and if they’re trying to manipulate the public for ‘other’ reasons they should be turned over to the SEC..
I think it was Dem lawmakers accusing him of talking down the economy shorty after he was sworn in, because he talked about taking some precautions in case of a recession, I forget what. Anyway, shortly afterwards some airplanes hit important buildings, thousands were killed, and his entire agenda was forgotten.
Typical NBC anti-Trump headline that does not even match the first line of their own story.
Then unwind the QE crud and get back to normal!
And this tactic is crystal clear - they’re trying to talk down the market to harm Trump.
It’s called a correction. It happens after every sharp rally, you have a correction which gets stock prices more in line with fundamentals. They make it sound like the end of the world.
“Federal Reserve officials” are employees of a private, for-profit organization. They are not part of our Constitutional government.
Please, let’s not confuse the sheeple.
Hell, there are some around here whom think the Fed Res is constitutional a/o beneficial.
Takes all types for the World to go ‘round, I guess...
The market is anticipating a cut to corporate rates—they have it factored in. Let’s hope it happens. If some judge is bribed to block tax reform, or Soros and his manipulating allies have their way, our market could take a dive.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.