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Fed hikes rate, lowers 2019 projection to 2 increases

Fed hikes rate, lowers 2019 projection to 2 increases

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  • How curious! Seems to me the market signs - high volatility, slowing growth forecasts, and oil price declines - are being largely discounted by policymakers... makes for a very interesting 2019!

  • It’s entirely possible the Fed didn’t want this hike, but Trump forced its hand. Postponing a hike after Trump’s repeated tweet-interventions would have raised questions about the Fed’s independence and eroded its credibility.

  • They called this a 'dovish' hike in the lead-up, and I guess lowering forward guidance from 3 hikes in 2019 down to 2 qualifies.

    Pretty much no one wanted this hike. Trump didn't want it. Obama's former chief economic advisor didn't want it. CNBC's Jim Cramer didn't want it. Bloomberg's Joe Weisenthal

    They called this a 'dovish' hike in the lead-up, and I guess lowering forward guidance from 3 hikes in 2019 down to 2 qualifies.

    Pretty much no one wanted this hike. Trump didn't want it. Obama's former chief economic advisor didn't want it. CNBC's Jim Cramer didn't want it. Bloomberg's Joe Weisenthal didn't see the point, tweeting, "it's like making yourself fat so you can get skinny later."

    So it looks like we've got a bit of a hawk running the Fed. Let's hope that this doesn't suffocate the wage gains we've been seeing creep up lately. Raising interest rates has a way of doing that....

    Here’s another little nugget from our friends at Bespoke Investments: “S&P 500 has now declined on a record 7 straight Fed days which is a streak that began when Powell became the Chair”

  • Although the markets say they were expecting this, stock prices suggest they were factoring in some kind of pleasant surprise - which clearly didn’t happen. What I don’t get is why stock market pundits still use market performance as a guide to what the Fed should do.

    The Fed makes decisions on the

    Although the markets say they were expecting this, stock prices suggest they were factoring in some kind of pleasant surprise - which clearly didn’t happen. What I don’t get is why stock market pundits still use market performance as a guide to what the Fed should do.

    The Fed makes decisions on the economy and their expectations of that, not on what stock markets need or want.

  • Waiting for Trump's tweet...

  • Phillip that is the most ridiculous line of words strung together I've ever read. The United States economy was beginning to burgeon, we were becoming oil independent for the first time in many years, and the illegal , unconstitutional, privately owned federal reserve began raising interest rates to

    Phillip that is the most ridiculous line of words strung together I've ever read. The United States economy was beginning to burgeon, we were becoming oil independent for the first time in many years, and the illegal , unconstitutional, privately owned federal reserve began raising interest rates to quell our growth to stop our boon and to stifle American business once again....All for one reason, to KEEP Trump and our country from being successful. You know it, I know it.

    Best thing that could happen is for our President to run some tanks over to that wretched institution.

  • The tricky part about forecasting 2019 fed moves is that because a change in inflation is the result of many other changes in the economy that take time to show up (that is, inflation is a lagging indicator), there is a lot of room for judgment in how to assess the many factors. Having said that, central

    The tricky part about forecasting 2019 fed moves is that because a change in inflation is the result of many other changes in the economy that take time to show up (that is, inflation is a lagging indicator), there is a lot of room for judgment in how to assess the many factors. Having said that, central banks everywhere now make transparency of action a high priority because expectations of inflation are an influencing factor in themselves.

  • The Fed made an unpopular decision, based on their own data and research. You don’t see this in countries that have weak government institutions. That independence is a good thing for the US economy for years to come.

  • Mmm

  • RIP the Fed put.

  • Hal Duckett- Bravo! Well said and riddled with truth. I am no where near as qualified as your description of your vocation. But, I have researched enough to know that the fed is our mortal enemy. Wasn’t it interesting that back in 2013, their 100 yr anniversary, there was virtually no mention of it in

    Hal Duckett- Bravo! Well said and riddled with truth. I am no where near as qualified as your description of your vocation. But, I have researched enough to know that the fed is our mortal enemy. Wasn’t it interesting that back in 2013, their 100 yr anniversary, there was virtually no mention of it in the press. They operate in the shadows the same way they were born. They’re about as federal as Federal Express...America will never be free under their tutelage.

  • Romansh you certainly don’t understand that the market is always a leading indicator and remember how stupid green spam was when the he raised rates when the market was creasing he really screwed us