Posted on 03/02/2022 8:52:45 AM PST by Browns Ultra Fan
Like the old E.F. Hutton ads, when Fed Chair Jerome Powell talks, people listen.
Stocks rose, while bonds fell after Jerome Powell said he was inclined to back a quarter-point U.S. rate hike in March to combat inflation that is “too high.”
In a broad-based equity rally, financial and industrial companies led gains in the S&P 500. The two-year Treasury yield — which is more sensitive to imminent Federal Reserve policy moves — was near 1.5%. The Fed chief also noted that the central bank is prepared to be more aggressive if inflation is more persistent than expected, while adding that he’s open to “series of rate increases” in 2022. Investors also assessed the latest geopolitical developments, with oil paring gains after earlier topping $110 a barrel.
WTI Crude futures are up to $107.05 a barrel.
Natural Gas (UK) rose 34.58% to 100.28. Wheat is 7.62% to $1,059.
The 10-year Treasury yield jumped 11 Basis Points on Powell’s comments. And Eurozone yield are up nearly the same amount.
Powell signalling a more moderate rate expansion led to the Dow rising over 500 points (up 1.65%).
Based on core PCE growth of 5.21%, the Mankiw specification of the Taylor Rule model infers that The Fed Funds Target rate should be … 13.40%. Since The Fed’s target rate is only 25 basis points, a 25 basis point increase is modest indeed.
Mortgage rates are down slightly today, but you can see the separation between The Fed’s target rate and the 30-year mortgage rate.
(Excerpt) Read more at confoundedinterest.net ...
Exactly. I’m excited now baby!
The damn government caused the inflation and ALL the shortages we’ve been subject to. Trudeau added to our demise with his truck’n mandate sh**.
Our economy is in trouble and Powell and Commies have run it into the ditch. The financial issues we are facing will get worse because their actions and inaction. 25 basis points on Fed Funds will do nothing to address our continuing inflation issues. Brandon and company seem to be working hard to cause the dollar to be removed as the world’s reserve currency.
“Brandon and company seem to be working hard to cause the dollar to be removed as the world’s reserve currency.”
The danger is that the world economy splits in half—with Russia, China and Iran leading the non-western economic alliance.
Economic wars are almost always a prelude to shooting wars.
> Our economy is in trouble and Powell and Commies have run it into the ditch. <
Right you are. Powell and the gang are in a trouble of their own making. If they don’t raise interest rates to a realistic level, they risk out-of-control inflation. But if they do, a long-overdue recession will hit, and make Slow Joe look bad.
I’ll bet you an inflated dollar they’ll just kick the can down the road again. Gotta keep a lid on things until they can retire with a fat pension.
A quarter point is not going to make a dent, when inflation is currently running at 6%
If they half-@ss this thing the Fed is going to guarantee a very long bout of inflation. They’re simply kicking the can down the road for the next 3 years and leaving a bag of doo on the White House porch for the next presidential administration to deal with.
Meanwhile, in the Middle East, Bread could become a luxury. Russia-Ukraine supplies 90% of Egypts wheat. (ZWK2 - 1059 )
#8 you have the 6 upside down...
It is 9% :) :(
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