..she's going to keep rates extremely low going forward. Even if inflation indications rise. Maybe even do helicopter drops.
Market will believe it when it sees it, ie no rate hike this year, hence the post spech drip. No way that's getting priced in yet until we hear/see more.. Remember the spike up the other day off rumors she was stepping down? Market is sick of her talk haha
She is asserting that they don't have the effects that they desire and wanna do more...everyone knows it takes very little reason to keep interest rates low..
today more clues that they will tolerate some inflation, more so than usual to make sure inflationary economic trends take hold.
This is well reasoned and correct in my opinion: https://www.bloomberg.com/view/articles/2016-10-26/why-this-dollar-surge-is-different-for-the-fed The bottom line is that the U.S. economy must be viewed in terms of its relationship to the economies of our major trading partners, and likewise U.S. Central Bank policy has to be both considered and formulated in light of the central bank policies of our major trading partners.
Trump being victor gives the Fed additional room for expanding monetary policy with lower risk. There are "things" that can be "gotten away with" with Trump as president that wouldn't fly under Hillary. It might be best if the Fed stabilises at 1.5% and sits tight in the face of a severe bear market. I think that December rate hike will happen.
The demographics haven't changed overnight. The debt burden is still there. We're still in Japan mode despite what Mein Leader plans to do. Housing will take a hit from higher mortgage rates. Earnings are going to get hit with the dollar this far up. Brexit I and II (II being Trump) should embolden Southern Europe to depart from the Euro. With the ECB running QE, did any of the troubled countries do anything significant to position themselves for growth or a way out of their debt troubles when that QE ends? I didn't notice anything. Don't underestimate this Euro break, it will causes dollar problems down the road.
If job growth lines up with higher interest rates, I don't see housing taking much of a hit and after 3 million illegals are deported, that's a lot of jobs that not only open up to be filled by citizens, who don't shack up 10 people to a house, but money that stays in the country because it's not being remitted south of the border. Ultimately I believe if the interest rate hikes coincide with job/income growth, we should be able to keep housing stable. Assumable FHA loans will be a selling point again when mortgages are 5 or 6% and you can assume a loan at 3.5%. Mortgage industry might take a hit though as they will only be making small 2nd mortgages on these FHA homes to cover sellers equity when they sell.