Posted on 08/01/2019 10:06:41 AM PDT by Moonman62
*** The bond market is taking on the Fed, betting the Fed is mistaken in its view that it does not need to cut rates very much, strategists say.
*** The market is betting inflation will be much lower than the Fed expects it will be, and that will force the Fed to keep cutting rates.
*** Stunning moves across the Treasury curves sent yields sharply lower, and the benchmark 10-year yield was edging toward a 3-year low, while stocks rose sharply in response.
The bond market is bent on having its way and is now pricing in a Fed mistake.
In a swift reversal, the bond market began to price in more easing a day after Fed Chairman Jerome Powell surprised markets with a low commitment to future interest rate cuts and a less dovish view than expected.
Additionally, the idea that low inflation will now force the Fed to ease more than the Powell signaled after the Fed cut rates Wednesday has now filtered into the markets and is driving bond yields sharply lower and stock prices higher. The 10-year U.S. Treasury yield, which influences mortgages and other loans, fell to a stunning 1.95%, nearing a 3-year low, while the Dow surged more than 300 points.
(Excerpt) Read more at cnbc.com ...
Some in the fed and other economist-observers fear cutting rates now leaves them little room in the future if there is a downturn. And some think there are signs of slowing growth. So they are betting on rates going closer to zero in the medium term.
Out-of-touch Shemp was giddy in yesterday’s program, saying that the Fed did things their way and that they didn’t bow to pressure from Trump. And how, here are the markets telling the Fed/Power and Shemp that, they’re all wrong.
Shepard needs to be sent to where he would be more at home, and that ain’t in the U.S.
Some in the fed and other economist-observers fear cutting rates now leaves them little room in the future if there is a downturn.
He would fit in fine at CNN...
Some in the fed and other economist-observers fear cutting rates now leaves them little room in the future if there is a downturn.
...
Without the Federal Reserve causing a downturn there won’t be one.
Without the Federal Reserve causing a downturn there won’t be one.
It’s called the business cycle, but the Federal Reserve causes it.
Trump is doing his best to eliminate it.
We’ve been trying for 200 years. No tree grows to the sky.
The FR may attempt to soften the blow, but having interest rates at zero is drinking the water intended to prime the pump for the next time.
You’re free to disagree with me and President Trump.
We can’t force you to be right.
We can’t force you to be right.
Ok so help me get this. China, the EU, etc. are massively lowering rates to make them more competitive than we are by making their cost of money lower than ours. You propose we keep our cost of money high for what reason? So that when their actions bite us in the ass we have dry powder? The whole reason to cut now is to prevent our ass being bitten. Maybe I am the dumb one, but one of us is for sure dumb as a stump.
I would love to see a news channel open mike new and young talent (yes, especially those who HAVE NOT gone to jour-NO-liberalism school)...Bet we could get some actual news stories instead of opinion pieces. Even FOX news is too opinion filled and their staff are always looking to make something of themselves.
I got a face for radio... ;-P
See my comments upthread.
So that confirms it. I already read upthread and if that is all you have, I am not the dumdum.
I agree!
Keeping Treasuries yields low is important.
Got a lot of Obama’s loans to pay off.
Some basic economic cycle ed needed on FR: https://youtu.be/PHe0bXAIuk0
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