Posted on 12/01/2023 9:21:24 AM PST by millenial4freedom
Wall Street is gearing up for rate cuts. Twenty months after the Federal Reserve began a historic campaign against inflation, investors now believe there is a much greater chance that the central bank will cut rates in just four months than raise them again in the foreseeable future.
Interest-rate futures indicated Monday a 52% chance the Fed will lower rates by at least a quarter-of-a-percentage point by its May 2024 policy meeting, up from 29% at the end of October, according to CME Group data. The same data pointed to four cuts by the end of the year. Investors, battered by the Fed’s efforts to slow the economy, have reacted by driving the S&P 500 up nearly 9% this month. That is despite the wagers reflecting different possible paths for the economy, not all of them favorable for stocks.
(Excerpt) Read more at msn.com ...
Why not? There is no rhyme or reason to anything going on. Especially this jacked up housing market.
Fed.gov can’t afford 5% interest rates.
Interest payments on existing debt alone next year will likely be a record 5% of GDP (over $1.4 Trillion)
The only way Fed.gov gets out of debt is to INFLATE its way out
The Fed may get away with a little bit lower rates for a short period of time—but the medium and long term trend will be for higher interest rates and higher inflation.
The stock market is on borrowed time imho—stocks are way overpriced by any historical metric.
> The only way Fed.gov gets out of debt is to INFLATE its way out
Or provoke some kind of crisis that will require a digital currency that is in effect a reset of existing dollars. Though I don’t think the infrastructure is in place for that yet. So, inflation it will be.
even Tom Lee said yesterday on CNBC that we should be cautious about equities going into the new year.
The Deep State will do whatever it can to get a Democrat elected president in 2024. Nothing else really matters.
If raising rates helps, that’s what they’ll do.
If lowering rates helps, that’s what they’ll do.
I always recommend doing the exact opposite of what CNBC says...now you have me second guessing myself...
;-)
They and this administration have things so screwed up now you would think they can’t get much worse but they will... bet on it.
Does the Fred real government borrow money wit a variable interest rate? Or a fixed rate. For ten years, the interest rates were super low and that’s the majority of our debt.
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