The Federal Reserve thinks low rates have had only a 'modest' impact on stock market prices

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That's contrary to the conventional Street wisdom which ties the low rates and money-printing to a market bull run that is less than a month away from its 11th anniversary

But the analysis also reflects a tightrope Fed officials are trying to walk in which they want to keep policy accommodative enough to maintain the economic expansion while not fueling bubbles.

"They think that valuations are justified because rates are so low," said Danielle DiMartino Booth, who was an advisor to former Dallas Fed President Richard Fisher and now is CEO of Quill Intelligence. "At the risk of saying it's different this time, I think the Fed is not factoring in its own policy in its risk premium calculus."that he is not very concerned about where the market stands.

"It doesn't really work well to put blinders on. That's what it feels like officials are doing," Booth said. "With interest rates so low, you wonder what the next shock to the system will be. They're running out of ammunition." Fed officials contend that the most recent leg up for the market has been more about the dovish rate stance members adopted in 2019. Others have argued that bond buying, if nothing else, acts as a signaling device for the market that the Fed is going to keep policy accommodative. When that stops, market expectations change.

 

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Dipshits

They know....just think we are idiots

The fed should normalize rates and see if that has a “mild impact” on the market. We all know it crash on even the next mention of a rate hike

When do their noses start growing? Mild impact 😂😂😂😂😂😂😂

This is the Fed saying expect more nonQE-QE to ensure Trump wins.

This is Feds saying “don’t blame us when the stock market bubble burst.”

REALLY - RAISE INTEREST RATES 1/4pt AND WATCH STOCK MARKET TAKE A BIG HIT !!

and the Head of The Reserve was appointed BY?

Ha ha ha. TGIF

Correct. They were only modest interest rate cuts. Tax reduction, regulation cuts, American capital from abroad came home, influx of foreign capital investments, low energy prices, zero/no inflation & increased corporate earnings/ebitda are largest drivers of the new roaring 20s

LOL...oh the humanity

They live in fairy land, they don't live the same way, money coming in from five different venues. Anyone else is trying to time the market cause they don't have the funds to invest into blue chip stocks, or high paying dividends stocks. Keeps the money flowing.

Hahahhahahahhaha The FED federalreserve are even bigger permabulls than you charlatans They keep pumping and pumping stock bubble just like you TWINS separated at birth

Presidential hair has much higher impact!

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