Posted on 03/03/2020 7:10:27 AM PST by L,TOWM
The Fed said the “fundamentals of the U.S. economy remain strong” but that the coronavirus “poses evolving risks to economic activity.” Fed Chairman Jerome Powell will be holding a press conference at 11 a.m.
(Excerpt) Read more at finance.yahoo.com ...
Amazing how many people here on FR expect the government to solve all their problems and take away their freedoms for a strong cold. Disheartening to say the least.
In fact this latest episode of herd panic hysteria has made me realize just how weak willed most people truly are. I had a sense of course, but now my eyes are wide open to how pervasive the problem is of brainless cattle stampeding to the media narrative right on cue.
No... but it can take the pain out of the ridiculous amount of panic that is coming over a virus with barely a higher death rate than the flu.
The stock market had already begun the “erasing the losses cycle” YESTERDAY, Dow up by 1,200 points, BEFORE the Fed acted.
I think sanity was already returning to the economy and the Fed’s actions today was not needed.
I think the Fed is over reacting now, just as the stock markets were over reacting last week.
Agreed. I’ve been feeling like that since 2001.
Hear! hear!
Yes we have been at historically low interest rates for a while now.
...
Which is nothing more than historical information.
Why should the the Fed base current interest rates on the economic conditions when Jimmy Carter was president?
I don't, the virus will, because of the panic, cause an economic slowdown and the rate cut is meant to alleviate that.
Are you aware of why? Hint - it wasn't because a lot of investors saw cheap stocks and decided to jump back in.
Ah yes. The Carter and early Reagan years. I was so grateful to get a 13% mortgage. This current generation has no idea what that was like. Yes we have enjoyed cheap and easy money for a while now.
I’m curious as to your explanation.
I have my own theory and it lies in the political realm.
Are those nominal rates or real rates including inflation?
No, I don’t know why.
Nor whether it was predictable in magnitude and timing.
I don’t agree with this because as you point out it is seemingly a move brought on by panic. It is saying they are seeing something and we are not being told.
They could have done 1/4 point and played wait and see. Actually even 1/4 point now would have been premature.
As of now, the market has digested that news and continued on its own merry way.
“Cheap and easy money doesn’t get people out of a sick bed or quarantine to go to work or buy stuff...”
That’s true but we need to look at the big picture.
I agree with this cut because the economy is so health why put the brakes on it?
Whew hew!!
guess wall street isn’t a fan stocks are down 500 points
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