Posted on 09/14/2016 9:34:48 PM PDT by exbanker
On Monday republican presidential candidate Donald Trump fired political shots at the Federal Reserve saying, “she is keeping them artificially low to get Obama retired,” while referring to the interest rate policy the Fed has taken under the leadership of Janet Yellen.
(Excerpt) Read more at ibankcoin.com ...
Isn’t the common theory at this time that the Fed May actually push sub zero interest rates?
If rates go up, so does interest payments on the national debt.
The Fed is out of bullets...and they know it.
As hard it is for some here to believe partisan presidential politics on ether side are something the markets pay little attention to in any campaign season.
If anything they will react to changes in Congress...
They know damn well if they start jacking up the rates, it’ll stick knife in what’s left of this sick declining economy.
No, that’s really not the direction things are going. The next move is a rate increase, probably at the December meeting. There were abstract discussions in Jackson Hole about what the Fed might do if they were to be confronted with a fresh downturn, what tools are in the kit to deal with that, and consideration of negative rates was mentioned in that context, but not as a current policy discussion.
The Fed is not going to raise rates early to please Donald Trump or prove him wrong. There’s about a 25% chance now that they do go in September, but if so, it will be about the economy reaching full employment not about DT.
Agree with you. There seems to be remarkably little change in markets when poll readings change for the White House. Maybe if the poll aggregators were to move their odds about 50% for Trump it would start to have an impact.
Nonsense. Raising rates will cause Hillary to lose in a massive landslide
Thanks for the response. I appreciate it.
I only go by the scuttle-butt I run into here and other places, so I was thinking a rate reduction might be coming along.
I don’t want to see negative rates.
I’m not convinced these rates close to zero are a good idea either.
Individuals need to be able to realize some interest on their funds. It’s absurd for banks to get 14 to 29% on what you owe them, and pay out zero on what you loan them.
As for individuals getting a good return, I’ve been looking at REITs, some of which are paying 10%+ annual dividends. Finanical advisors say their stock prices may go down after interest rates rise, but this devaluation in REITs won’t happen for several years, when the rising rates reach their peak.
So I’m considering them for only a third of my portfolio for now.
As hard it is for some here to believe partisan presidential politics on ether side are something the markets pay little attention to in any campaign season.
If anything they will react to changes in Congress...>>> they will manipulate the market for news cycles and try to destroy people like W. he as a dupe aligned himself with goldman sachs who did him in. trump is not going there so they will attempt to destroy what they can to blame trump. they want another mess to keep him preoccupied from actually making any changes.
There is no way that Yellen is increasing rates. She knows she’s out of a job if Donald Trump is elected. And she knows if she increases rates the stock market will go down hard just before the election, making it harder for Hillary to win and for Yellen to keep her job.
This will definitely happen if Trump is elected, in my opinion. And they will try to blame him.
Why would Hillary’s people keep obama’s fed chairman?
Besides Janet has her own undiscussed health issues. She suffered an episode in the middle of a speech last year. Went totally absent. Looked like mini stroke.
We need inflation expectations to be higher to get the yield curve higher. Global economic capacity is overdeveloped, so very hard to create sustained price pressures.
So if the Fed doesn't raise interest rates then it's a political decision meant solely to prove Trump wrong and damage his electoral chances. If the Fed does raise interest rates then it's a political decision meant to trash the stock market and damage Trump's electoral chances. The Fed can't win.
And as an exbanker you should know that it's not up to Yellen. It's up to the ten members of the FOMC, of which hers is a single vote.
Trump induced??
Are they admitting that the Fed intends to sabotage a Trump presidency??
Annnnnnd prove Trump right...
Agreed. If Trump wins, she'll quickly increase rates before she's fired to cause a recession in 2017.
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