Forget Stocks – Money Market Is Signaling Possible Troubles Ahead

  • 📰 Forbes
  • ⏱ Reading Time:
  • 37 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 53%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

The Fed’s downplaying of the money market event is a mistaken strategy

New York Fed officials examining whether distribution of reserves contributed to cash shortages earlier this week”contributed to a spike in short-term lending rates this week, after the central bank said it would extend recent operations to inject cash into money markets., known as reserves,.

“’That ability of the system to move money around and redistribute—it didn’t work the way we’ve seen in the past,’ said New York Fed President John Williams“The New York Fed said on Friday it would continue to offer to add at least $75 billion daily to the financial system through Oct. 10, prolonging its efforts to relieve pressure in money markets.

However, when things go awry, unsupported reassurances can have a negative effect. The negative effect is heightened when the Fed guesses at the cause and then it turns out to be wrong. Worst of all is when the Fed begins throwing money into the system in the hopes of solving whatever the problem is and keeping those guys in the other room from running for the exits.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

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

Momentum stocks are out of favor this month, but one technical analyst sees a comebackMomentum stocks are taking a breather this month, but Oppenheimer's Ari Wald sees the trade coming back into favor.
Source: CNBC - 🏆 12. / 72 Read more »

UBS: These 10 'crowded' stocks are especially vulnerable to a sharp sell-offA UBS note included Visa, Google-parent Alphabet, and Comcast among the most 'overweight' stocks in active funds around the world.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Global Stocks Slip as Trade Talks FalterGlobal stocks retreated amid fading optimism around U.S.-China trade negotiations as the two countries signaled an agreement remained out of reach. If we dumped Trump the market would soar Maybe you should rethink this “deal” thing. The real “deal” is that the trade tariffs are giving a rise in our economy because we are paying higher prices for everything. A nutshell. You pay more trump looks good. No thanks are necessary. And seriously disappointing Eurozone PMIs. Manufacturing is in a recession globally, likely to spread to other sectors or at the very least dent their growth.
Source: WSJ - 🏆 98. / 63 Read more »

Stocks close little changed amid worries about the global economyStocks lost steam into the close today to finish little changed. The Dow closed up 15 points. The S&P 500 slid 0.01% and the Nasdaq fell 0.06%.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks close mixed amid upbeat US manufacturing activityThe Dow Jones industrial average rose during US trading on Monday, while the S&P 500 index and Nasdaq composite fell.
Source: BusinessInsider - 🏆 729. / 51 Read more »