Fed raises rates

Discussion in 'Wall St. News' started by Scataphagos, Dec 19, 2018.

  1. clacy

    clacy

    Rates were what, 0.25% for 8 straight year? Now apparently we can't raise them fast enough?

    It seems like the Fed has two speeds which seems bizarre.
     
    #11     Dec 19, 2018
  2. It's a setup, watch his Q&A with reporters... Reporters usually dick ride the theme but even they were grilling him after his, we will be more data driven from now on... Huh ? The head of the Federal Reserve said we will me more DATA DRIVEN in the future, so the gut feeling logic decision was a better choice this time ? Ill have a story to tell for the rest of my life with today, the man hiked us into a collapse and couldn't even answer properly what was the reason behind the tightening except saying, we will be more data driven in the future... Forget very easy money now with PUTs, even if placed during next tiny rally, liquidity providers in options are well aware and premiums will be abnormally high, there's no catching them by surprise, were talking low-mid six figures profit difference on multiple puts... Tightening the books by 375 billion in a deep deflation cycle, then coming out and saying " We will be more data driven from this point forward "... Retards work at the government level, retards...

    Ben " Sub-primes are good for the economy " Janet " I don't have a clue whats going on " and now Jerome " We will be more Data Driven in the Future "... Data drive the widening of books and rate cuts again at end 2019 tool!
     
    #12     Dec 19, 2018
  3. SunTrader

    SunTrader

    What does Powell think he is doing raising by a waaaaa whopping 25 basis points.

    The sky is falling, the sky is falling.

    Panic in the streets.

    Oh BTW remember all that debt The Fed took on a couple of years back - which they have been unwinding for awhile now. Maybe that has a little sumthin, sumthin to do with current bond market conditions.

    Hope they at least earned some skymiles now that the bill is due and they are making monthly "installment" payments.

    Just sayin'.

    PS: No more talk, now that midterms are done, about a Drumpf "middle class" tax cut. Wha happ'n?
     
    Last edited: Dec 19, 2018
    #13     Dec 19, 2018
    tommcginnis likes this.
  4. S2007S

    S2007S


    Look back at my last 1000+ posts ... I have consistently yelled that rates should have been well above where they are today....they should have been well over 5 % back in 2012...they are so far behind now that the next recession/crisis will send rates straight to zero and most likely go negative as I have been predicting...they are too late now, the economy is grinding to a halt, worldwide economic slowdown is here...too late now....you will be lucky to see 3% interest rates by end of 2019...my immediate prediction would be .50%-1% before 3-4%!!!!!
     
    #14     Dec 19, 2018
  5. themickey

    themickey

    Their dot plot runs on a 3 year moving average, always late to the party.
     
    #15     Dec 19, 2018
  6. Overnight

    Overnight

    Do you base this on a chart? 20-20 backward vision? Genius!

    https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
     
    #16     Dec 19, 2018
    tommcginnis likes this.
  7. R123

    R123

    The Fed is deeply driven to get more data, unfortunately it is like to getting a better view out of the rear view mirror. Work fine on the straight sections of the economic highway, but not to good when the economy turns.
     
    #17     Dec 19, 2018
  8. MKTrader

    MKTrader

    Right, but the shameful thing is they get credit for the "booming Obama stock market" which had nothing to do with him or his policies...it was all ZIRP and QE. Yellen should've started raising rates in 2014 when she took charge (they were already overdue). Instead, she gives one token rate hike just before Obama leaves office...

    In addition, raising rates as the yield curve is inverting isn't very prudent. What's more, interest on the public debt could get seriously ugly as rates increase. Again, Obama's soaring debt levels were shielded due to ZIRP.
    http://www.economicpolicyjournal.com/2018/12/interest-due-on-us-national-debt-starts.html
     
    Last edited: Dec 19, 2018
    #18     Dec 19, 2018
    Scataphagos and FriskyCat like this.
  9. MKTrader

    MKTrader

    And politically motivated.
     
    #19     Dec 19, 2018
  10. Ditto!

    Odumbo comes into office when the markets were waayyy down and bottoming. Then, Fed lowers rates to zero and keeps them there, Odumbo's deficits ratchet up the national debt from $9T to $20T, and the Fed takes $4T onto their balance sheet as "buyer of last resort". Talk about "wind at your back".

    All along, Odumbo was trying to hamstring the economy with rules and laws while herding more and more people onto permanent government dependency. The markets rallied in spite of Odumbo's policies, not because of them. It was all the Fed.
     
    #20     Dec 20, 2018
    hendrix406 and MKTrader like this.