Goldman: The Market Is Wrong About Yesterday’s Fed Decision
Should you "trust" (and I don't even know what that means here because in your capacity as a market participant "you" were involved in creating the reaction) the market's dovish interpretation of the Fed?
More than a few people have suggested that the answer is "no" - or at least "probably not." "[The] market reaction to yesterday's Fed announcement was somewhat bizarre," Bloomberg's Cameron Crise wrote on Thursday morning, adding that "after all, there was nothing in the guidance (and little i
A whole host of players thinks we invert and “Fed funds generally don’t matter” compared to market rates. Maybe that is so in a QE world.
Rumor has it that half the population (including the “market”) is below average intelligence. Unexpected decisions by the general public/markets increase as a result of the digital age opening the playing field to pretty much everyone with an online device, trading and a social media account. Basically the uninformed have never been so powerful to influence the “wisdom of the crowd.”
How can the Fed reactively change monetary policy when there is no final fiscal policy in place? In other words, there’s nothing there there in either the Fed comments or the Goldman comments on the Fed comments. I think the Fed is stalling until the tax reform bill gets passed (oh and Yellen can exit out the back door).
Yes, Yellen has her hand on the cord as she runs away from this mess. Hey, fed what if? inflation does pop to 4%-5% what’s the plan????????????? Well…. ah…..ah…. I ..don…t……have ….a…….fu*king……..ah..clue.
If so then USD collapses, much more than it did in 2017. Not a prediction but a possibility. With all the unfilled positions at the Fed, nobody knows what it’ll look like. But we do know that Draghi’s days are numbered and the PBOC will be tightening subsequent to their party congress last month. Those economies are at a different point in their cycle. But the Fed must keep pace with lessening accommodation abroad or the dollar could suffer more.