Keep on Dancing
Powell: Rate cut is likely coming soon
Reduction by Fed would be first in decade
WASHINGTON — Pointing to a weaker global economy, rising trade tensions and chronically low inflation, Chairman Jerome Powell signaled Wednesday that the Federal Reserve is likely to cut interest rates late this month for the first time in a decade.
The chairman’s remarks led investors to send stock prices up, bond yields down and the value of the U.S. dollar lower on expectations of lower interest rates. The S&P 500 index briefly traded over 3,000 for the first time.
Investors have collectively put the odds of a rate cut this month at 100 percent. The Fed’s benchmark rate stands in a range of 2.25 percent to 2.5 percent after it raised rates four times in 2018 — action that incited the initial attacks on the Powell Fed from Trump.
DYI: As
long as the music [speculation] keeps on playing market participates will keep
on dancing [speculating]. Once the
euphoria of the speculation wears off the music will end along with the dancing
as all the dancers will leave the floor in a panic. Stock markets will tumble. High yield and junk bonds will be smashed. Hold onto your hats, your cash and gold
better values are ahead. The Great Wait
Continues…However it is now coming sooner rather than later!
DYI
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