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As Bullard Tips Rate Cut, Here Are A Couple Of Simple ‘Catch Down’ Charts
"The FOMC faces an economy that is expected to grow more slowly going forward, with some risk that the slowdown could be sharper than expected due to ongoing global trade regime uncertainty", Jim Bullard said, in prepared remarks for a chat in Chicago, where the Fed is convening their policy framework review this week.
Bullard goes on to (basically) call for rate cuts. “A downward policy rate adjustment may be warranted soon to help re-center inflation and inflation expectations at target and
you are right on point Mr H. and i need you to keep reminding me of the obvious (that is a serious comment). sometimes it is easy to get lost in all the noise.
Bullard’s ‘musings’ are just to give Trump cover on his interfering with th Fed. Higher tariffs on virtually all Chinese goods will eventually increasingly be passed on to the American consumer, which would be inflationarey, obviating the need for deflationary-protection rate cuts. Or is Bullard just trying to avoid a rececession which would hinder Trump’s re-election prospects…Bigly.
Is the die cast? Is a recession avoidable? Or will it be like the Greenspan era, where a run of the mill cleansing recession is deemed unnecessary and avoidable, until the garbage gets piled so high that we have the recession of our lifetimes?
Blah blah blah. The only squiggly line needed is the one showing the S&P is 5% below all-time highs. The markets are screaming for cuts, so obviously the Fed will oblige so that the loser Wall Street investments in Treasuries can be vindicated with a continuing bond rally as we head toward -6%. Obviously with the Fed mandate of stable prices in the teeth of tariff hikes in an okay economy you cut interest rates 50+ bps. That is just math. Good thing Herman Cain or Stephen Moore aren’t on the Board of Governors or the Fed may do something really stoopid.
never clear to me why you think you’re proving something by castigating financial analysis as “blah, blah, blah” “squiggly lines”. if you don’t like and/or don’t derive any value from it, don’t read it. it’s just that simple. i don’t like McDonald’s, but I don’t show up there every day and shout “nasty, nasty, nasty” at the cashier.
I don’t think Harvey is castigating financial analysts here….I think we all derive a lot from hearing ourselves talk even if none else does…This picture of what drives this last 5 years in Equity prices is far from clear (sorry Charlie) and there is definitely something inbred in the community that is charged with analysis….. It is supper tough being relevant when the system at the top intends to obfuscate not elucidate …
harvey is cool. he’s just that friend that likes to push your buttons everyday.
I thought , I was pretty sure you two were well acquainted from my recollections of past interchanges on this blog.