Another day and more headlines about trump and now vp Mike pence wanting lower rates....what is this fu$king garbage talk...this has been news now for a few weeks. They actually believe there is no inflation...is that so. Guess they haven't paid much attention to the prices of goods and services rising straight through the roof....they must be totally clueless. That's the excuse now, no inflation so let's lower rates, if I was the fed I would jack rates straight to 6-7%, get those rates up for the next economic collapse so they have some wiggle room to work with ....they want to lower rates in a booming economy, I mean that's how all these talking heads seem to see where the economy is headed....goldman Sachs said chance of recession stands at a whopping 10% ...I honestly cannot fathom why they believe a 2.5% fed funds rate should be lowered in this gangbusters economy. 2.5% fed rate is at historical lows compared to most times in any history with where the economy sits today, they want 0%, give it to them so when the collapse comes we can see the fed drop rates to negative 3% or negative 5%....so I bet the fed bows once again and lowers rates instead of raises them at the next possible change in rates just to give Mr. President what he wants. Vice President Mike Pence backs Trump’s call to lower rates, citing low consumer inflation https://www.cnbc.com/2019/04/10/vice-president-mike-pence-backs-trumps-call-to-lower-rates.html
Personally it doesn't matter whether rate is lowered or raised. But we don't like rate to be status quo. As long as they say something, we will be happy because their speech will move the market in whatever direction. In fact, if they say something very pleasing or controversial or shocking, that's even better for us traders. Because we like volatility.