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Originally Posted by ASAP17
Want to get a discussion going here and I have my own thoughts on this I'll get to. Please try to keep political opinions out of it. A question that should be on every investor's/trader's mind short term and into the future...
Why is the Fed cutting interest rates this week?
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Originally Posted by coordi
Seems like a reaction to the global economy, though, the rumblings are that our economy isn't nearly as strong as market ATH would lead people to believe.
Personally, I get the sense that things aren't reacting in expected ways and they are trying to get ahead of what should be a big correction.
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Originally Posted by juan valdez
You're not going to like this answer but I think Trump realizes his re election odds rest heavily on the stock market and his rhetoric is pointing towards it's performance. I think he has influenced the fed to cooperate with his agenda. Perhaps his influence is over stated but I think it's definitely a factor
On top of that, this market is now owned by the fed. If this thing tanks, they fed will have everyone pointing towards their policy and actions creating the situation. I think that reaction is fair. The fed has blown a bubble and they are terrified of how badly it could turn out and they know they'd be held accountable. I think the fed is hanging on for dear life just praying whenever things correct that its a soft landing and not a meltdown and massive global economic rescission.
The fed is reacting to market moves with their commentary. They seem to be extremely focused on stock prices and are using policy rhetoric to calm the market on any down moves. When the children got scared the fed came in and reversed course. The market has rallied hard now that it seems to be backed by the fed. I think the fed knows they are driving this market and are just trying to keep the balls in the air
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Originally Posted by CharlieDontSurf
To keep the party going as long as possible because when the music stops it’s gonna be a real gnarly ending.
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Originally Posted by :::grimReaper:::
Because the market has been expecting it. Doing anything else will create havoc.
100% chance of rate cut expected in September, chance of 50 bps jumped from 9.5% to 37.5% today.
Historians/economists are going to have a fun job explaining this period we're living in, truly unprecedented what's happening from governments/central banks.