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Erin Gibbs (financial expert , investment advisor - on the right) on with Cavuto agrees.
Pretty hot news.
Posted on 11/28/2018 9:49:22 AM PST by mandaladon
Federal Reserve Chairman Jerome Powell on Wednesday suggested the central bank could be close to slowing down the pace of its recent interest rate increases, saying rates are now just slightly below what he considers a “neutral” level.
His comments marked a sharp change from his position last month, when he said the Fed still had a “long way” to go before it reached that equilibrium.
U.S. stock markets soared on Powell’s comments, as he appeared to signal that the Fed would not move forward aggressively to raise rates much further than it already has.
Still, by saying rates were slightly lower than the level he perceives as “neutral,” Powell’s statement appears to be suggesting at least one more interest rate increase is coming in the near future.
Powell’s comments did not appear to accept recent arguments from President Trump that past interest rate increases have been a mistake.
“Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy that is, neither speeding up nor slowing down growth,” Powell told the Economic Club of New York.
(Excerpt) Read more at washingtonpost.com ...
Trump is always working the ref’s!
His reassuring tone and delivery of new tools aka reports to assess how the Fed thinks seem to be well accepted by the machines , so far. He helped fill in some gaps re: overall state of economy.
DJ now hovering in mid to high 400s..
Yep. Trump was right to publicly criticize the Fed (some Fed governors also believed rates were going too high).
Although some here on FR think Trump was wrong.
I believe what Trump did with Powell used to be called “jawboning.”
https://en.wikipedia.org/wiki/Jawboning
Still, by saying rates were slightly lower than the level he perceives as “neutral,” Powell’s statement appears to be suggesting at least one more interest rate increase is coming in the near future.
...
Too bad he won’t acknowledge that the yield curve is the best indicator.
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Erin Gibbs (financial expert , investment advisor - on the right) on with Cavuto agrees.
Pretty hot news.
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Yes, they used that a few times on the financial shows moments ago.
What would happen if there were no Fed?
Jeez that’s a surprise lol
If we get to DOW 26000 again, I’m going to cash.
I’m too close to retirement and this market is exhausting.
IMHO, he had a much more hawkish tone throughout the speech than the often repeated "just below" normal rates. Things like:
Asset prices are overpriced (meaning he won't think it wrong when he brings them down faster than Hillary trying to walk).
Banks have a lot of liquid assets making them much more stable than they were in 2007 (meaning he thinks they can handle 2007 style rate hikes now better than they did then).
After 10 years of concentrated efforts in the public and private sectors, the system is now much stronger (meaning public and private sectors can handle the rate hikes).
If you’re not yet retired, you should have twenty or thirty years ahead of you in retirement. Within that time frame, the market will be way higher than what it is now. If you stress out from gyrations, remain invested but with a heavy portion of bonds. If you cash out, you can be sure a time will come when you want back in, and may pay a heavy price in profits lost.
DJ is now over 600.. with a few minutes to close..
Not with a completely brainwashed electorate happily accepting the most outrageous lies.
A “neutral” interest rate between more growth and more slowdown is a crock. The Fed should lean towards more growth which would be consistent with the Humphery-Hawkins Full Employment Act requiring it to work to make employment its primary goal.
The Powell Pop w/ assist by President Trump
Market Close
S&P 500
2,743.77
+61.60(+2.30%)
Dow 30
25,366.37
+617.64(+2.50%)
Nasdaq
7,291.59
+208.89(+2.95%)
Russell 2000
1,530.26
+37.41(+2.51%)
Hang in there.. but I hear ya on the exhausting part..
It’s hard to not squirm when big chunks of investments go up and down as drastically as they do these days.
Keep in mind the market is much larger today with many more options than ever before for a whole range of those who seek to invest and hopefully grow healthy nest eggs.
I don’t even flinch these days when it burps 500 either way tho I prefer positive swings, obviously.
Worse case, buy Krugerands, not BitCoin.. and gunpowder to protect same. :-) That may be your best investment should things really go in the dumpster.
“If we get to DOW 26000 again, I’m going to cash.
I’m too close to retirement and this market is exhausting.”
You’ll likely need some portfolio growth after retirement. The optimal post-retirement equity allocation is probably not 0%.
Flipping the House to the DNC will naturally screw up the economic boom. She's running scared though.
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