Posted on 10/11/2016 1:15:09 PM PDT by CruiseMates
The last time the Fed hiked was in December of last year. Even though it was well-telegraphed, it still led to two months of heightened market volatility that saw the S&P 500 tumble 13 percent before recovering. If the minutes reveal a divided Fed that might try to accelerate the course of rate hikes in the year ahead, that likely would move markets.
(Excerpt) Read more at cnbc.com ...
The last time the Fed moved just before an election led to George HW Bush lost his presidential re-election bid, even though he was a popular President (Gulf War, etc). It looks very political that the Fed has not moved yet - and they WILL move in december if not this month.
Do we need the fed?
Could go either way. They’ve been putting it off and I’m guessing will until after 8 November when they see which way the wind is blowing. Could be wrong.
Is The Fed about to publish the results of an independent audit?
That damn
Creature from Jeckel Island
The Fed promised four hikes in 2016, before they saw the devastation one hike could create. When they raised last December the market fell 15% and did not recover until Feb 2016. After that, their plan to keep raising went sideways, but now they are facing a LOT of pressure because P/E ratios are dropping and the market is all hot air.
Expect a BIG drop in the market as soon as the hike is announced. It would be a Godsend if they did it tomorrow, but very unlikely. However, there is a LOT more push towards the hike now that they are feeling so overly confident about Hillary.
See: http://www.cnbc.com/2016/10/11/goldman-sees-rate-hike-odds-rise-as-trump-slides-in-polls.html
There is also a ton of pressure on Yellen not to appear political (tho she is , of course). But if somehow she could be moved to make that move this month, Wow.
In any case, if you are in the Market I would be very careful at these levels.
They won’t do anything until after the election, and probably not then. The RATS are addicted to cheap money. Working Americans trying to save their hard-earned money will continue to be punished to benefit speculators.
They have become political to help politicians.
3rd quarter earnings aren’t a nice picture too.
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