Federal Reserve: 'Risks Diminished'; Next Rate Hike In May 2017?

Investors Business Daily ^ | July 27, 2016 | ED CARSON

[expat_panama]

The Federal Reserve left interest rates unchanged Wednesday afternoon at the end of its two-day policy meeting. Policymakers said "near-term risks" to the economy have faded, but investors generally saw the central bank in no rush to raise rates.

Key points from the FOMC policy statement:

"Near-term risks to the economic outlook have diminished." "On balance, payrolls and other labor market indicators point to some increase in labor utilization in recent months." "Household spending has been growing strongly but business fixed investment has been soft." "Inflation is expected to remain low...

...Fed statement was a tiny step toward an eventual rate hike. But, if anything, investors pushed back expectations of a rate hike. According to the CME Group FedWatch Tool, there is now a 43% chance of a hike by the December meeting, the first time a move is seen as a serious possibility. Before the Fed announcement, it was 50-50. A rate hike isn't actually seen as likely until next May.

Investors see less than a 20% chance of a hike at the September or November meetings.

Kansas City Fed President Esther George was the lone dissenter, favoring a quarter-point rate hike.

[AndyTheBear]

The federal reserve is not going to raise interest on the federal government when they are trillion in debt.

[AndyTheBear]

20 trillion that is

[Ghost of Philip Marlowe]

Just long enough to get through the election cycle.

Look for Dow approaching 19K by November, just to be safe and to ensure the Dims stay in power.

[Jamesmm]

How Deutsche Bank’s £35trillion of trades puts Europe in peril: Warnings that failure could bring global system crashing down

http://investmentwatchblog.com/how-deutsche-banks-35trillion-of-trades-puts-europe-in-peril-warnings-that-failure-could-bring-global-system-crashing-down/

[glock rocks]

Safe havens shot up. Look at silver SIU6 yesterday.

[expat_panama]

 

Good morning! 

Stocks mixed/up in rising volume  --IBD calls the distribution count at 3 for S&P500 and 2 for NASDAQ!  Futures look good not only for for stocks but for metals too as gold and silver have jumped to $1,340.45 and $20.35.

Reports:

8:30 AM Weekly jobless claims
8:30 AM Advance trade in goods
10:00 AM Rental vacancy rate

Also:

Growth Means Nothing Without a Job - Robert Samuelson, Washington Post
Ignore All the Pessimists, Manufacturing Is Thriving - Daniel Gross, S+B
Silicon Valley Matches Up Surprisingly Well wTrump - Noam Cohen, NYT
Both Trump and Clinton Fumble on Free Trade - Geoff Colvin, Fortune
The DNC Is Just One Big Corporate Bribe - David Dayen, The New Republic
Zoning Has Had Good 100 Years. Enough Already - Justin Fox, Bloomberg
On the Italian & Eurozone Doomsday Scenario - Steve Hanke, Globe Asia
It's Hard To Tell If Interest Rates Have Hit Bottom - Mark Hulbert, USAT
Despite a Wimpy Fed, September Hike Is On Table - Wesbury & Stein, FTA

[CIB-173RDABN]

Keeping the interest rate low on savings is a wealth redistribution scheme from the middle class to the bankers.

Unfortunately there are few (safe) places for someone to put their money during these economic times.

[bert]

-—Is U.S. Manufacturing Really in Decline?-—

This article is in opposition to E Trog dogma and represents truth rather than desire

http://www.strategy-business.com/blog/Is-US-Manufacturing-Really-in-Decline—

[babble-on]

The next rate hike is December this year.

[shelterguy]

The minute Trump wins they will increase it to 20%.

[1rudeboy]

Silver is a "safe haven?" LOLOL

Maybe if you have a couple mil in the bank.

[blam]

[expat_panama]

Thanks, I decided that it needed its own thread: Is U.S. Manufacturing Really in Decline?

[expat_panama]

Keeping the interest rate low on savings is a wealth redistribution scheme...

You can't be saying that whenever you shop around for low interest rates for say, a credit card, that you like participating in "a wealth redistribution scheme.."

[expat_panama]

...federal reserve is not going to raise interest on the federal government when they are trillion in debt.

The Fed raised rates in the past when fiscal debt surged, what's so different now?

[Toddsterpatriot]

Keeping the interest rate low on savings is a wealth redistribution scheme from the middle class to the bankers.

These low rates are reducing bank profits. They'd prefer it if rates rose a few percent.

[Buckeye McFrog]

translation: Our mission is not to tank the economy unless Trump has been sworn-in.

[Jack Hydrazine]

I expect them to go to negative interest rates any time now.

[Toddsterpatriot]

Deutsche Bank isn't at risk because they have 35 trillion in “dangerous” derivatives. It's in danger because it has over 75% of it's balance sheet in cash and “risk-free” government bonds paying less than 0%.