Author Topic: Stocks soar as Fed Chair Jerome Powell hints interest rate cut likely in July  (Read 535 times)

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Offline Elderberry

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Houston Chronicle by Heather Long 7/10/2019

Federal Reserve Chair Jerome Powell had two messages for Congress Wednesday: Central bank independence is critical and an interest-rate cut is likely at the end of July.

President Trump has repeatedly bashed the Fed, blaming Powell and his team for harming the economy by keeping interest rates too high and threatening to try to remove Powell as chair if the situation doesn't change. Powell hinted strongly Wednesday that a cut is likely to happen this month because Trump's trade war and slowing growth abroad are starting to bite.

"Since [June] appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook. Inflation pressures remain muted," Powell said Wednesday during his testimony before the House Financial Services Committee.

Wall Street is pricing in a near 100 percent probability of a reduction in interest rates at the Fed's July 31 meeting. On Wednesday, U.S. stocks soared with the widely watched S&P 500 index crossing 3,000 for the first time ever shortly after Powell's initial remarks and ended the day just shy of that level. The tech-heavy Nasdaq closed at a new record high.

"Jay Powell fully endorsed the July rate cut and did absolutely nothing to pull the markets back from that expectation," wrote Peter Boockvar, chief investment officer at the Bleakley Advisory Group, in a note to clients.

Other top Fed officials have given even more explicit hints that rates are coming.


Offline SirLinksALot

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Dow just breached 27,000

Offline Drago

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Going to have to re-research "Stagflation".

Offline XenaLee

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Democrats will report that the economy is over-inflated and 

Is there such a thing as too good?  I recall them calling Bush's economy (before they destroyed it) the Goldilocks Economy... not too hot, not too cold, just right.   I can almost 'feel' them working feverishly to destroy Trump's golden economy.
Time for unity in America! (better late than never)

Offline InHeavenThereIsNoBeer

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Yeah! The economy is booming so much the Fed needs to cut historically low rates to support it!  Buy NOW!
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