Unemployment rate predicted to go to 7%, that means the fed can stop printing trillions, buying bonds and bringing the fed funds rate to 2% by Dec 2020. Ha yea fu×king right. Even when unemployment dips back to single digits the fed will still be printing trillions and handing out wallstreet gifts!!!!!!!! https://www.cnbc.com/2020/07/08/fed...-falling-to-as-low-as-7percent-this-year.html
The fed is the reluctant market maker for the market. I mean without this Corvid 19 thing, you think the gov't would be sending money to people or buying private assets. that is 'communism' what the Fed or gov't is doing This is corporate 'welfare' for the billionaires. Basically you have taxpayers money to buy PRIVATE assets from billionaires and 'parasites of the economy.' The fact the gov't is buying 'private bonds' from private hands. normally ,they are only suppose to buy back bonds the bank lends out not private bonds. to increase or decrease money supply..they've broken the regulations which is rampant in third word countries with a central bank. The central bank in theory is suppose to be 'independent' of gov't and suppose to make balance between making money and ensuring economy prosperity. meaning lending money at a profit. contrary to popular belief the central bank or known as the 'federal reserve' is NOT a private bank. it was created by the gov't and is 'gov't bank' or public bank. that money is the people's money. The big roaring 20's prior to the crash of 1929 was caused by the US fed. reserve too. they were lending money to people and banks to buy assets or any asset. like now. gov't is giving money to people at 0% interest ..no private bank would do that charity stuff. cause it's not their money. That is the difference between a gov't controlled economy versus as 'market economy' China isn't a market economy. and the stock or financial market is not place for price discovery anymore. national socialist economy is what the US economy is heading too. Trump withdrawing from the UN, withdrawing from the WHO etc. and if this contines end free trade or withdraw from the WTO..which in that case is bad for US corporations. WTO memberes countriees in the WTO have rules. like not discriminating against foreign 'corporations' etc. or make laws thtat give forign companies a disadvantage. now if the US withdraws from the WTO and end of WTO.