Uh-oh. Dovish Talk from the Fed Lays an Egg

IMG Auteur
 
 
Published : March 22nd, 2019
306 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Opinions and Analysis

Stocks whoopee-cushioned on word from the Fed that tightening is unlikely for the remainder of the year. “Interest rate increases could be on hold indefinitely,” Powell said. “It may be some time before the outlook for jobs and inflation calls clearly for a change in policy.” Although the stock market’s obligatory headless-chicken dance ended with the broad averages largely unchanged, it’s surprising and not a little disappointing that shares didn’t get more lift from the announcement. Some observers had expected the central bank to feint toward tightening, however cryptically, and so Powell’s latest utterance should have produced a reaction of at least mild relief.

24hGold - Uh-oh. Dovish Talk f...

At the same time the Fed Chairman was deftly managing our expectations — the job for which he was hired — the news media was doing its part to spin some front-page headlines in Wall Street’s favor. A trade deal with China by “late April” was reported to be in the works, but this was just the administration’s way of softening expectations and bending our patience toward an uncertain time horizon. And lest Boeing continue to drag on stocks, the fatal propensity of the 737 Max 8 to plummet to the ground was being ascribed to a mere onboard-computer glitch.  There’s nothing to see here, folks — just a few lines of bad code. Southwest, United and American have decided to keep flying the plane in any event, but we doubt that passengers would be so gutsy if they could choose their aircraft. A market solution would call for carriers to implement a $100 surcharge for travelers who’d rather avoid the Max 8. My money is on Frontier to lead the way on this.

If you don’t subscribe, click here for afree two-week trialthat will give you access to everything. And please do stop by the Trading Room to say hello.


|
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Rick Ackerman is the editor of Rick’s Picks, a daily trading newsletter and intraday advisory packed with detailed strategies, fresh ideas and plain old horse sense.
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.