Fed Put No More? | Forex Factory

  • Fed Put No More?

    From cmegroup.com

    But the central banks were able to lower rates when equities sold-off for one reason and one reason only: inflation was low and stable at around 2% in the United States and even lower in Europe. Now that inflation has risen to above 8% in both Europe and the U.S., lowering rates when the equity market gets in trouble is no longer an obvious solution. In fact, doing so could cause a rise in inflation expectations which could make inflation more difficult to contain. This is problematic because the equity market in the U.S. has been declining on and off all year. Higher inflation has pulled long-term government bond ... (full story)

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gespiri
Jun 14, 2022 2:11am
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Quoting Pat Chiko
Fed has to choose between supporting the markets vs rescuing the economy and p..... main reasons for inflation. They need to find ways to fix this now.
It is called the INVISIBLE HAND THEORY that, I believe, Greenspan mentioned in his early years under Reagan. This is to leave the markets (no FED intervention) alone since it will naturally correct itself based on proven S/D forces.
As he recieved his marching orders from the REAL OWNERS of the private central banks, he abandoned that idea.
And now, here we are.....
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Pat Chiko
Jun 13, 2022 2:48pm
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Fed has to choose between supporting the markets vs rescuing the economy and peoples savings.

How hard is it to understand that right now inflation is sky-high and printing more money will just worsen it.

Fed exists for a purpose and it's primary goals must be to provide financial stability and security to the country and to the markets.

Regrettably their policies such as QE has been disastrous and is one of the main reasons for inflation.

They need to find ways to fix this now.
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Pat Chiko
Jun 13, 2022 2:52pm
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The Fed has no problem with every single American’s retirement fund (401K) going down.

Of course they don't care , coz their bellies are full
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Pat Chiko
Jun 14, 2022 2:23am
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There are a lot of people who believe that whatever the FED's action will be inadequate and inflation will stay, permeate and potentially lead to hyperinflation in the US.

the supply chain is messed up since the pandemic and the US has printed something like 11 trillion dollars during the pandemic, it certainly is a possibility.

This is getting crazy and scary.

Maybe it is time to fire Jay Powell and replace Jim Creamer...........
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