Opinion | A Stock Market Reality Check

Federal Reserve Chairman Jerome Powell speaks at a news conference following a Federal Open Market Committee meeting in Washington, D.C., May 4.Well, so much for optimistic assurances about inflation, interest rates and recession. Federal Reserve Chairman Jerome Powell’s relatively sunny take on all three on Wednesday, after the latest Federal Open Market Committee meeting, had pleased investors.

The volatility isn’t surprising given the policy variables and risks. Investors are trying to judge how high the Fed will have to raise rates to break the highest inflation in 40 years. At the same time, the Fed is promising to shrink its bond portfolio, which means lifting its foot off the neck of long-bond prices. Markets are trying to make sense of a policy environment that no one has seen in four decades.

But the economic risks are significant, notwithstanding Mr. Powell’s assurances on Wednesday that the economy is strong. Even normal monetary tightening cycles produce financial casualties as liquidity ebbs. This time around could be worse because the monetary excesses were so extreme in 2020 and 2021. The surprise will be if there are no nasty financial surprises—meaning credit failures—this year and next.

opinion Most of this mess is due to the people who refused to get vaccinated.

opinion

opinion So you're saying it's going to get worse. Got it.

opinion FJBANDHISSUPPORTERS

opinion You where not leading momentum by emotion where you.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Coinbase stock price falls more than 11% amid broader market routThe stock price for the publicly traded crypto exchange Coinbase is down nearly 12% on Thursday amid a broader tumble in US equities. 😢 It's down like 80%! Good fucking riddance We need and want XRP
Source: TheBlock__ - 🏆 464. / 53 Read more »

5 Things to Know Before the Stock Market Opens ThursdayU.S. stock futures dropped Thursday, one day after a strong Fed-driven relief rally pushed Wall Street higher for a third straight session.
Source: nbcchicago - 🏆 545. / 51 Read more »

As Dow sinks over 1,000 points, signs of panic-selling emerge in the stock marketPanic-like behavior was starting to set in on Wall Street on Thursday, at least from a technical perspective, as the Dow industrials shed all of the previous day’s gain, and then some. So predictable! All your future is belong to Renewables There's no panic. VIX is 30.
Source: MarketWatch - 🏆 3. / 97 Read more »

Stock market has not hit bottom yet, expert saysEddie Ghabour, the co-founder of Key Advisors Group LLC, explains why the U.S. stock market has not yet hit bottom. commonsensebull Hope it plunges into an abyss. An economy powered by printed $$$ and 0% rates is a 'Potemkin village'. REAL capitalistic economies REWARD SAVERS!!!!!!!
Source: FoxBusiness - 🏆 458. / 53 Read more »

Weekend reads: How to invest when stock market is reelingAlso, a threat to Apple, how companies including Lyft, Uber and Domino's Pizza are affected by a tight labor market and three fascinating retirement locations. 🤦‍♂️ Oh just mellow out
Source: MarketWatch - 🏆 3. / 97 Read more »