5 replies to this topic

[Rogerdodger]

Fed Refrains From Rate Hike While Maintaining Sunny Outlook

 

https://finance.yaho...-180000884.html

 

Federal Reserve officials left interest rates unchanged while signaling they’ll look past a recent deceleration in U.S. economic growth.

“The committee views the slowing in growth during the first quarter as likely to be transitory,” the Federal Open Market Committee said in a statement Wednesday following a two-day meeting in Washington. “Near-term risks to the economic outlook appear roughly balanced.”

Central bankers provided little direction on when they might next change the policy rate, giving themselves flexibility to raise or hold at their June meeting.

Fed officials have penciled two more rate hikes into their 2017 forecasts in addition to the one increase they made in March. Inflation is closing in on the Fed’s 2 percent goal and the jobless rate has fallen to a level officials see as consistent with their maximum-employment mandate.

Edited by Rogerdodger, 03 May 2017 - 01:05 PM.

[Data]

Starting to see more QE taper signs.

 

ECB cuts its monthly purchase amount to 60 billion euros.  Its plan seems to be reduce by 10 billion every three months.

 

The Bank of Japan sets ifs May purchase amount to 6 to 9 trillion yen for bonds.  It appears to be a reduction of 3 trillion yen from the previous month.

[Charvo]

It looks like a June rate hike is on the agenda.  This is interesting because the US stock market usually rallies into a rate hike given past history.  The banks especially do well.  The anti-dollar stuff do badly.  Gold got hit hard today.  I think this means US stocks are safe until the June rate hike is done.  After that, it's another ballgame.  It really depends on the global markets ex-US going into the rate hike.  If it's going down hard, then I think the US markets will follow suit.

[Data]

I think we may see more of the same as before.   Many small declines in the indices followed by a few large rallies that wipe out the losses.   The Bank of Japan can selectively inject large amounts as based on financial conditions.

[dasein]

nd what will this do?

 

THE government of Puerto Rico said in 2015 that the island could not pay its debts. Yet it was only on May 3rd that it kicked off the biggest bankruptcy case in America’s history. Public-sector debts total almost $74bn (around 100% of GNP).

[qqqqtrdr]

Amazing how Q1 GDP Growth was sub 1%, but Q2 GDP Growth is targeted at 4% at the moment.... We will see if it fizzles out as well as new numbers come in.      New Home Sale growth is around 11% and Car Sales at -2%...   It is difficult to figure out what is really underlying in the Economy....

 

Barry