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re: Down 4,387 Points Since Fed Reserve Threats in October

Posted on 12/21/18 at 5:59 pm to
Posted by gthog61
Irving, TX
Member since Nov 2009
71001 posts
Posted on 12/21/18 at 5:59 pm to
Oh no, do you think it will be down forever? Oh no!
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/21/18 at 6:03 pm to
Except there is no inflation.
Posted by EA6B
TX
Member since Dec 2012
14754 posts
Posted on 12/21/18 at 6:07 pm to
quote:

Except there is no inflation


Agree, should have stipulated that this is only a theory being perpetrated about why the Fed does what it does.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/21/18 at 6:08 pm to
If you are going to bash Trump get your shite straight. The vast majority of the loss is since 12/4 when he made his tariff man comment.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/21/18 at 6:10 pm to
There is actually a little inflation to the producers which is not being past on to the consumer at this time. Not much though.
Posted by ILeaveAtHalftime
Member since Sep 2013
2889 posts
Posted on 12/21/18 at 6:28 pm to
quote:

this last hike was unnecessary


I feel the same way. And not for political reasons or stock market reasons.

Inflation has remains low. The global economy is poised for some major shocks this spring between the Trade issues with China, the pound, euro and the European economies being all over the damm place depending on what happens at Westminster, and whatever uncertainty that may come from our domestic issues I.e, Mueller. I don’t understand why any adjustment to the overall situation, much less rate increase was necessary this meeting.

Admittedly I am no economist and know next to nothing on monetary policy. But I don’t understand this latest rate increase at all

ETA/tldr: I understand why the rate is lowered to combat uncontrolled growth and inflation, but were we really seeing signs of these things? Again, not a political question but an economic one. I’ve been under the impression that (stock market’s 4Q aside) we’ve been chugging along nicely.
This post was edited on 12/21/18 at 6:35 pm
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/21/18 at 6:32 pm to
I am on the fence about the last one. It was so expected that if they would not have gone, I think the market would have freaked out. I think they left enough of an opening for 2019 that they can keep pushing the hikes back if they need to.
Posted by ILeaveAtHalftime
Member since Sep 2013
2889 posts
Posted on 12/21/18 at 6:37 pm to
quote:

It was so expected that if they would not have gone, I think the market would have freaked out. I think they left enough of an opening for 2019 that they can keep pushing the hikes back if they need to.


Ok. That makes some sense.

If you’re willing to explain, I have an ignorant follow-up: when you say the market would have freaked out, does that imply that Wall Street would have reacted negatively to an unchanged rate or that the market’s level of expectancy was so assured of a rate increase that the market wouldn’t have have a predictable response?
This post was edited on 12/21/18 at 6:39 pm
Posted by RockyMtnTigerWDE
War Damn Eagle Dad!
Member since Oct 2010
108974 posts
Posted on 12/21/18 at 6:39 pm to
Did you see who won the House?

Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/21/18 at 6:42 pm to
My opinion is the market would have said things must really be getting bad for them not to raise. Remember they have been saying they would raise in December with 4 more hikes in 2019. If they would have not raised in Dec. and reduced the expected hikes to 2 like they did, then that would have been a negative sign. This all just my opinion, of course.
Posted by Jjdoc
Cali
Member since Mar 2016
55619 posts
Posted on 12/21/18 at 8:09 pm to
Wrong.... I'm not melting. I am pointing out truth.
Posted by Jjdoc
Cali
Member since Mar 2016
55619 posts
Posted on 12/21/18 at 8:12 pm to
quote:

To control inflation, if the economy is good and


Nope. There is no evidence of inflation
Posted by Bunk Moreland
Member since Dec 2010
68385 posts
Posted on 12/21/18 at 8:14 pm to
If the deep state or Fed crushes the economy to run out Trump, I can accept that. I expected it was probably coming. But, I will not tolerate Russian collusion or campaign finance impeachment nonsense.
This post was edited on 12/21/18 at 8:16 pm
Posted by LSURussian
Member since Feb 2005
134904 posts
Posted on 12/21/18 at 8:20 pm to
quote:

There is no evidence of inflation
Posted by Spock's Eyebrow
Member since May 2012
12300 posts
Posted on 12/21/18 at 8:45 pm to
quote:

Who appointed Jerome Powell?


Who cares? Janet Yellen was very short in stature. Powell's taller.
Posted by buckeye_vol
Member since Jul 2014
35381 posts
Posted on 12/21/18 at 9:25 pm to
quote:

Nope. There is no evidence of inflation
What? The most recent CPI-U is at 2.2% YOY and and Core PCE (inflation index the Fed uses) was at 1.9%.

It’s low inflation, but that’s still inflation. If there was no evidence of inflation (0% or deflation), then that would probably be a bad sign for the economy.
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