Posted on 12/06/2018 6:50:27 PM PST by E. Pluribus Unum
Stocks closed well off their session lows on Thursday after news broke that the Federal Reserve could tighten monetary policy at a slower pace than previously expected.
The Wall Street Journal reported the central bank is considering whether to signal a wait-and-see approach to rate hikes at its upcoming meeting this month. The report said Fed officials do not know what their next move on rates will be after December.
“What this week and a half shows is an extraordinary sensitivity to headlines, more so than usual,” said Delores Rubin, senior equities trader at Deutsche Bank Wealth Management. “It’s been very difficult to navigate the waters so far.”
The Dow Jones Industrial Average closed 79.40 points lower at 24,947.67 after plunging nearly 800 points, while the S&P 500 closed 0.15 percent lower at 2,695.95. The Nasdaq Composite erased its losses, closing 0.4 percent higher at 7,188.26 as Amazon, Netflix and Alphabet all rose more than 1 percent.
Stocks initially fell sharply as continuing fears over U.S.-China trade relations and concern over a possible economic slowdown kept investors on edge.
“There’s concern that the trade deal is not as good as [President Donald] Trump said it was,” said Mark Esposito, CEO of Esposito Securities. “Recession fears are also settling into the market.”
“It’s definitely safer to be in cash right now,” Esposito said. “I don’t think the fall is over.”
(Excerpt) Read more at cnbc.com ...
Hmmmm, fed raises rates.
Trump blasts the feds.
The MSM blasts Trump.
Stocks tumble.
Fed admits defeat and lowers rates - to help stocks.
And....if it works...whatcha gonna say, MSM idiots?
You all are journalists for a reason...math, even at an elementary level, is NOT your friend.
Stocks closed well off their session lows on Thursday after news broke that the Federal Reserve could tighten monetary policy at a slower pace than previously expected.
...
How can this be? The partisan media has already blamed Trump for the fall in the stock market.
You mean it was fear of the Fed all along?
I don’t recall that “keep stock market averages up” as being one of the Federal Reserve’s mandates?!? They have held rates far too low for too long. Well past time to normalize rates. But I am afraid that politicians will have too much pull with the Fed...normal rates on $22 trillion in debt will eat up a quarter of the Federal budget.
A few here on FR also blasted Trump.
The yield curve looks sick. Interest rates should be measured relative to the market, not historical absolutes.
And the Fed hiking rates has greatly increased the interest we pay on Obama’s debt and is adding to the deficit.
You missed the step where Trump took advantage of the Fed position in order to take China to the woodshed by finally giving himself a moniker: “Tariff Man”. Dow dropped in response to the spat, and in response to the Dow dropping, the Fed has to back off rate hikes.
Mark Esposito?
Those who bought low are doing a happy dance.
https://www.cnbc.com/2018/12/06/the-stock-selloff-started-with-a-mysterious-fall-in-the-futures.html
The Fed rate-hike schedule actually made a lot of sense from a purely defensive standpoint. Reducing interest rates is the only really effective weapon they have to deal with a recession, and these rates can’t be reduced very much if they’re still at historic lows. The uncertainty about future rate hikes is probably a good thing, though. The market should not function with that kind of anticipation.
It sounds like you’re saying the Fed should keep raising rates and cause a recession, so that they’ll have enough room to get us out of the recession.
The Fed fueled obamas “growth” through 8 years of near-zero interest rates. Once Trump unchained the economy, organic growth returned. The Fed was suddenly confronted with an economy they weren’t controlling, so they decided to put the brakes on a natural growing economy.
The only way out through this mess the Federal Reserve created is Digital Assets which are coming to institutions in 2019.
The Fed has raised the rate 12 times on President Trump in less than 2 years, and plan to raise to raise it another 5 times. Keep in mind they raised it 0 times under 8 years of Obama. They are trying to kill the economy for political gain in 2020.
Here is the dirty little secret. President Trump is trying to rescue our economy while the Establishment has been trying to wreck it over the last 10 to 20 years. They tried to wreck it by killing Glass Steagal in 1999, over spending the growth of government post 911, creating a housing bubble, ignored our pleas not to somthe TARP, QE1, QE2, QE3 and QE inifinity. Furthermore, they kept the interest rates artificially low under Obama in order to avoid him getting the blame. Now we are in a worse position than we were before the 2008 crash. You can’t raise the rates much more because the U.S. will not be able to make the minimum payments on our credit card. Thus, we will default and say good bye to being the world reserve currency. When that day comes..... Just know it was engineered by the Globalists and the Federal Reserve. They want to see the United States fall. Oh and if that happens say bye bye to all your pensions and retirement. The 401ks and IRAs will take a beating too.
The Federal Reserve is NOT federal and they do not have the “Reserves” they claim. Hence, why they are against an audit and transparency. Why do we let a private company dictates our economy?
This is what you get centralized money. Pure corruption and market manipulation. They have betrayed our Republic and the American people’s trust through corruption and pseudo economic policies.
I was in a trade that went south at the exact moment the markets reversed and instantly knew this was the reason. Sure enough, infound out a few hours later, it was.
This is exactly correct. Trump has jump-started an anemic economy with real actions over the last 2 years. With artificially low interest rates and a hot economy it is expected that the Fed would increase interest rates.
Trump can't have it both ways - hot economy and continuation of artificially low interest rates. Not happening. Also - a big problem Trump faces is that the interest on the debt will keep increasing with rising rates.
Even with the interest rate increases interest rates are still quite low rates by historical standards plus low unemployment.
These are good times. The calm before the storm prior to dems once again getting complete control of the government.
Yep. They’ve been screwing “savers” for the past 20 years with their artificially low interest rates and fiat money.
Yep, K Street & Wall Street over Main Street again. Fiat currency & “Can’t possibly balance a budget!” federal politicians combine to shaft savers & retirees.
The only way to deal with the current debt is to inflate it away.
Mark my words -- great inflation is coming.
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