Stocks have been rallying hard on the idea the Federal Reserve will cut interest rates soon, but at some point the market needs to see progress on the trade wars and economic weakness that are bothering the Fed., 100,000 less than expected. That immediately raised expectations that the Fed could cut rates as early as July because the long resilient labor market is now seeing the impact of what has already been showing up in manufacturing data.
"The market was shrugging it off this week. It's been a strong week for the market, so [investors] seems to be taking it in stride," said Arone, noting investors were looking past the Mexican tariffs for now and focused on the Fed rate cuts. "The market seems to be applauding [rate cuts] right now, but I'm not sure accommodative monetary policy in itself is enough of a catalyst for better economic growth and better earnings. We need more than that.
"You would think the market is gravitating toward one cut in July, one cut in September and another in December. We have 2.9, 25 basis rate cuts priced in for 2019. This really raises the stakes for next week's CPI, given core year over year CPI is over 2%, and also now because we're in the Fed blackout period. There won't be any additional guidance coming out of the Fed this week.," said Hill.
Am I getting this right? Trump imposes tariffs to force Feds to cut rates to make billionaires richer through Wall Street bubble?
We have the “ Greatest Economy in history” but we need the Fed to bail it out. Nobody still believes this crap anymore, right?
So, investors want bad things to happen just so they can get a rate cut. I'd love to see what happens if the Fed doesn't cut.
why this media doesn't mention that security of Americans is more important than tariff ? 😌
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