Have to wonder whether Powell can actually see anything, much less what the forest looks like. The Fed rate is now around 40 BP above the 10 year yield. This configuration is the height of incompetence historically. Bernanke did it from July 2006 thru December 2007, and then the fun started for real. The December rate hikie was a bad policy error, and 6 months later it's still getting worse not better. We need to have a month or hand holding before they can do a rate cut. Bullard and Kashkari kinow what's going on. Trump knows what's going on. But we're stuck with the dope running the Fed.....
The Trump target.....Powell
Started by
LMF
, Jun 26 2019 04:50 PM
2 replies to this topic
#2
aca123
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- Traders-Talk User
- 5 posts
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Posted 26 June 2019 - 05:46 PM
Clueless - but I guess often wrong never in doubt.
#3
Data
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- Validating
- 2,618 posts
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Posted 26 June 2019 - 09:45 PM
Market signals are being distorted by the Federal Reserve. Interest rates have dived about 75 basis points since the Fed's announcement in March that they would purchase 20 billion dollars a month in treasuries starting in October. The Fed is screwing around with the bond market and causing it to signal cuts in the overnight rate.
