Fed stimulus stock market

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Federal Reserve Chair Janet Yellen, in testifying before the Senate Banking Committee on Tuesday, made remarks that the markets viewed as exceptionally hawkish. We applaud Fed Chair Janet Yellen, who on Tuesday hinted that two to three interest rate hikes were on the way this year and warned that "waiting too long to hike rates But the same thing could have been said five years ago.

Yellen fretted that by waiting too long the Fed might get behind the curve and have to jack up rates quickly, forcing the U. What's troubling about this is that Yellen seems to be following an old, discredited economic idea. Known as the Phillips curve, this idea suggests that rising employment and higher wages somehow cause inflation, necessitating higher interest rates.

The only problem with that theory is it's not true, as the post-World War II economic record the s, s and s are all shining examples clearly shows.

If there is a real potential inflation threat, it comes from the siege of productivity-destroying regulations placed on the economy and the financial system, along with the extraordinary amount of money printed by the Fed over the last 8 years. What's truly bothersome is that the central bank kept interest rates near zero for nearly the entire Obama administration one measly quarter-point hike in December and another in December was alleven as White House officials bragged about the roaring recovery from Obama's bogus "stimulus" and the Fed talked up "full employment.

This one gauge will tell you where the stock market is heading - MarketWatch

So why did the Fed dawdle during the Obama administration, but now seems in such a hurry to jack up rates under Trump? Was it, again, because Trump wants tax cuts and infrastructure spending, which some at the Fed wrongly view as inflationary?

Is the Fed phobic about economic growth? Whatever the reason, Yellen in her remarks Tuesday said the possibility of a rate hike would be "live" at every meeting this year, a comment that the markets took as extremely hawkish for the usually dovish Fed chairwoman. Of course, as robert kissell optimal trading strategies noted before, last year the Fed expected as fed stimulus stock market as four rate hikes in It only made one.

But did the Fed know President Obama's candy crush saga ticker symbol were wrong, and gamble on zero rates for the better part of a decade in part to compensate for it?

As we said, it was a mistake to hold interest rates at zero for as long as the Fed did. It distorted markets, and made it difficult for the financial system to return to even a semblance of normality.

Why the stock market doesn’t mind Trump’s lack of stimulus specifics - MarketWatch

And forex 5nitro+ plus economy's growth, despite years of nearly free money, didn't respond. The Fed could have been gently raising rates back to normal starting as early as That it didn't do so held back growth, by telling businesses and markets alike that something was very wrong with the economy.

Given the Fed's errors in recent decades, which have led to repeated financial crises and recessions, it might be time to rely more on markets for our interest rate policies, and less on bureaucrats.

Restoring Conventional Monetary Policy At The Fed. Did The Fed Just Send Trump A Message? The Fraud Of Full Employment. Track the latest defense deals, airline orders and other aerospace news from the Paris Air Show.

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What rate hike? Fed may have to cut if Trump can't boost economy - May. 3,

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Stock markets jump to record high after Fed stimulus announcement | Business | The Guardian

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