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Thursday’s Big Story Wasn’t WSJ’s Fed ‘Scoop’ – It Was The Short-End Circuit Breaker

Let's get to the real story from Thursday, ok?

Let's get to the real story from Thursday, ok?
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2 comments on “Thursday’s Big Story Wasn’t WSJ’s Fed ‘Scoop’ – It Was The Short-End Circuit Breaker

  1. There is no doubt in my mind that equity prices impact the economy in cap spending decisions, hiring, risk taking/expansion, and capital allocation on the corp side and wealth effect and income on the consumer side. The reflexivity makes it imperative the Fed is cognizant of markets. There is no question in my mind that this selloff will impact corp budget decisions for 2019. And it will impact it with caution which will slow growth in 2019 vs a higher market. If sustained it will do more damage to the economy as more retrenchment takes place. The Fed is aware of this and though they probably welcome the markets and economy coming off the boil they also realize the economy can get out of control a la 2008. Data dependency always went both ways and will continue.

  2. Harvey Cotton

    I…I don’t understand how the Fed pausing interest rate hikes or even lowering the federal funds rate in the teeth of a slowing global and U.S. economy – in addition to increased trade barriers, equities at the historical high-end of valuation, QT, and ballooning U.S. debt – is risk positive.

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