FRB Chairman Powell stated the healthy US economy has faced some “cross currents and conflicting signals” that officials in January decided warranted taking a patient approach to future interest rate changes. He stated with inflation pressures “muted” the FOMC decision last month to ...
The FOMC said it will be “patient” on any future interest rate moves and signaled flexibility on the path for reducing its balance sheet, a substantial pivot away from its bias just last month towards higher borrowing costs....
As widely expected the Fed increased the overnight rate by 0.25%. The Committee also lowered its projections for 2019 to two increases versus three. Consensus was between one and three rises for 2019. The FOMC stated “economic activity has been rising at a strong rate”...
Has there been a massive change in sentiment? Small investors are the most bearish since mid-2013, a bearishness captured by the record outflow of $46 billion from US mutual funds and ETFs. There was also a near...
The G-20 meeting is over. I believe the two greatest issues facing the markets for the intermediate future is monetary policy and the normalization of the Fed’s balance sheet. Both...
Several weeks ago I referenced data indicating throughout the year the retail investor was buying the shares institutional investors were selling. Data compiled by Charles Schwab is now indicating the retail investor is now selling. The statistics further indicate the pace of selling is accelerating...
The midterms are over. There is infinite number of opinions about the possible outcomes. Economics prevailed in the Senate as the Republicans increased their number of seats but lost in the House as power shifted for the first time in eight years. In some regards the...
There was little initial reaction to the Minutes of the December FOMC meeting. Perhaps of significance was the Committee’s fear that the central bank might be forced to quicken the pace of interest rate increases to head off higher inflation....
Banks and phone companies pushed stocks higher as the dollar is at the highest level versus the euro since 2003. Financials are the direct beneficiary of a more hawkish Fed. As most are aware, the central bank is now projecting three interest rate hikes in...
In my view the markets are vastly over extended and could be subject to a sharp correction for almost any potential reason. Could an unexpected hawkish FOMC statement be a potential catalyst?...