Posted on 09/18/2019 12:32:46 PM PDT by SeekAndFind
“...but more rate cuts assumes an ever slowing economy and that’s not something to cheer for,” he added.”
Ok so this maroon is saying that lowering interest rates will slow the economy? This is some serious stupidity.
Tar Baby....................
“Ok so this maroon is saying that lowering interest rates will slow the economy? This is some serious stupidity.”
Interpreting his remarks like that shows some serious stupidity.
FED mandate: Full employment, 2% inflation target.
Employment: Over full, statistically.
Inflation: 1.6%, below target.
1/4 point cut: Just fine, move on.
Goldilocks economy.
Take the win however keep pushing for more
Very likely another cut comes in December or January and once again around June next year
Winning!
Short rates are still above where the market would put them.
Anybody who supports the Fed, supports the manipulation of the markets by elitist Ivy Leaguers.
No. He’s saying the rate cuts would be IN RESPONSE to slowing economic conditions ... so we should be careful what we are wishing for.
“No. He’s saying the rate cuts would be IN RESPONSE to slowing economic conditions ... so we should be careful what we are wishing for.”
I know what he said. The reason he is a maroon is because he thinks DOING something which is done DURING a recession and doing it to forestall a recession would actually CAUSE a recession.
Hang a stupid medal on this joker.
Don’t believe this full employment BS.
The term “full employment” isn’t supposed to suggest that everyone is employed. It’s used to describe a condition where the mix of employed and unemployed people, combined with the current skills needed in our industries, begins to have inflationary pressure on wages.
President Trump was correct in 2016 on the campaign trail:
https://www.realclearpolitics.com/video/2016/09/06/trump_the_fed_keeping_interest_rates_artificially_low_so_the_economy_doesnt_go_down.html
The N.Y. Fed printed $128 billion in the last 2 days to prevent a REPO melt down.
https://www.thestreet.com/investing/fixed-income/ny-fed-doubles-down-on-repo-intervention-as-bank-cash-crisis-rattles-markets-15094169
“Money for nothing and the chicks (black swan chicks) are free”:
https://youtu.be/lAD6Obi7Cag
“... but more rate cuts assumes an ever slowing economy and that’s not something to cheer for,” he added”
The rate cuts have absolutely nothing to do with a “slowing US economy”...which is record setting good.
They have to do with a half dozen EU countries trying to solve THEIR slowing economies with negative interest rates, and how those negative rates in turn affect currency valuations and imports/exports.
I happen to agree with this moderate move to offset the market distortions created by those negative rates. But there is another factor to be considered that people are missing.
Yes, global money is borrowing for less than nothing in Germany and other countries and buying US Treasuries with that money, bringing down the yield at bond auctions. But they are also going to be buying US equities, especially the ones that provide dividends. Think of it...borrow a million “dollars” worth of German money at nothing percent and using that money to buy shares of, say, Ford which is paying close to 6 1/2% dividend. Or some other US company.
Just my humble opinion on that last bit.
Can this Powell be fired?
??? Trump is playing this wrong. Isn’t begging for a rate cut tantamount to admitting the economy is NOT doing well?
Some people are speculating that Trump is going to come out with more tariffs in response to this by this weekend or at least tariff tweets.
It’s possible.
I am mostly closing positions at end of day for fear of the next twitter tirade.
The Fed clearly wants to get rid of Trump.
They get paid whether the economy tanks or not.
the very fact that a world wide private banking conglomerate can literally wave their hand and cause undo financial instability, should tell you all you need to know about this evil cabal of ‘central banks’
they answer to no one.....
No more rate cuts means more currency in circulation to fuel Trumps manufacturing renaissance.
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