Posted on 12/18/2018 5:56:33 AM PST by Moonman62
Inflation and other economic signals justify interest-rate caution.
If you think your job is tough, consider Federal Reserve Chairman Jerome Powell. He’s signaled for months that the Fed will raise interest rates again this week, but economic and financial signals suggest he should pause. Meanwhile, Donald J. Trump is beating him up almost daily not to raise rates.
What to do? The right answer is to ignore the politics, inside and outside the Fed, and follow the signals that suggest a prudent pause in raising rates...
(Excerpt) Read more at wsj.com ...
Everything says hold off on interest rate hikes.
But will the fed heed the warnings?
Stock markets say no.
We’ll know tomorrow.
Another interest rate hike has been expected since the summer so the stock market gyrations are being caused by something else. If anything if the Fed doesn't raise rates today that could cause a temporary bump in the indices.
IMHO the Fed will not raise rates today (and they shouldn’t). Financial uncertainty in England, France, Italy and China has driven down US long term rates. Inflation is mild.
IF the anticipated increase comes they will probably announce a change in the future planned increases.
IMHO the best compromise would be to jettison the “range” system we’ve been using since rates were at 0-1/4%. Instead of saying we are in a range of 2-2.25% just say the rate IS 2.25% and be done with it.
Looks like the FED and stock market (deep state) are trying to kill the Christmas season and the economy to make DJT look bad so they can impeach him.
Since there is no sign of wage inflation the Feds should be lowering rates.
UNaccountable bureaucrats in an unaccountable bureaucracy. Controlled demolition team.
Who, and when, was the Fed last audited?
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