Well duh! – re Federal Reserve

WSJ: “The case for raising rates has weakened somewhat,” Fed Chairman Jerome Powell said at a news conference after the central bank’s latest policy meeting.

Powell’s gone through the wringer and for now has come out the other side on the foolish interest rate increases, as we predicted – otherwise he’d be gone, as alternatively contemplated as well.

2 Responses to “Well duh! – re Federal Reserve”

  1. feeblemind Says:

    “The case for raising rates has weakened somewhat,”

    Somewhat?

    Does that not imply there is still a case for raising rates?

    Yeah, I know. After being intimidated he is walking it back and trying to save face.

  2. feeblemind Says:

    Dalio’s Fear Of The Next Downturn Is Likely Understated

    from the article:

    “In our opinion, the Fed’s new warm and cuddly tone is all about supporting the stock market. The market fell nearly 20% from record highs in the fourth quarter and fear set in. There is no doubt President Trump’s tweets along with strong advisement from the shareholders of the Fed, the large banks, certainly played an influential role in persuading Powell to pivot.

    Jerome Powell is a prisoner of the institutions and the history that he has inherited. Among this inheritance is a $4 trillion balance sheet under which the Fed has $39 billon of capital representing 100-to-1 leverage. That’s a symptom of the overstretched state of our debts and the dollar as an institution.”

    In other words, the Federal Reserve is now the “market’s bitch.”

    https://www.zerohedge.com/news/2019-01-31/dalios-fear-next-downturn-likely-understated

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