Fed to cut rates for first time since 2008 to save the long-running economic expansion | Metals Mine

  • Fed to cut rates for first time since 2008 to save the long-running economic expansion

    From cnbc.com

    The Fed is about to take the unusual step of cutting interest rates to save an economic expansion, not an economy that seems set to be headed into a downward spiral. The Federal Open Market Committee, at the end of its two-day meeting Wednesday, is widely expected to announce a quarter point rate cut, its first since it took interest rates to zero during the financial crisis in December, 2008. It is also expected to leave the door open to further rate cuts. Some market pros expect a 50 basis point cut, but the fed funds futures market puts the probability of a quarter point cut at more than 78% and a half percent cut ... (full story)

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vuxuanhung
Jul 31, 2019 12:23am — Edited
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Quoting hjs69
It is all speculation - trade the chart not the news. Big peeps like to work up everyone for nothing. Like last month, then it focuses on other stuff - trade war bla bla bla. See the pattern.
Mr. Powel has not made any official announcement for interest rate cut. For a week, only the press vultures were talking about it and there were a lot of people selling dollars. If we don't wait for the press conference today, we will be fooled. Spectacular trick
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EventsTrader
Jul 30, 2019 10:28pm
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FOMC Meeting - July Preview - I posted a preview with some quick notes and charts displaying recent impacts on gold, usd/jpy, and eur/usd. With all the uncertainty surrounding every aspect of this meeting, it's shaping up to trigger some pretty big market moves. The question is will the Fed be able to calm the markets after the rate cut? We'll see.
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longfellow
Jul 30, 2019 5:57pm
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If the Fed starts cutting, the next crash is going to be unbelievably huge. China is going to say FU all thru next year, until Trump loses (one would think, or hope) the election. [China typically plays the long game and waits out US presidents when negotiating] Bernanke knew the lessons of the last major crash in the Great Depression (75 years prior) and had some ammo to fight it when congress bailed (and wanted it to crash further to hurt the president). Powell seems like he's willing to forget the lessons of the last crash (a mere 10 years ago) simply to please a moron of a president.
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ettrader
Jul 30, 2019 6:48pm
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slashing rates at all time record highs in stocks to please Trump it's about as insane as you can get I don't think anybody has seen anything like this before.
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vuxuanhung
Jul 31, 2019 12:24am — Edited
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Quoting hjs69
It is all speculation - trade the chart not the news. Big peeps like to work up everyone for nothing. Like last month, then it focuses on other stuff - trade war bla bla bla. See the pattern.
Mr. Powel has not made any official announcement for interest rate cut. For a week, only the press vultures were talking about it and there were a lot of people selling dollars. If we don't wait for the press conference today, we will be fooled
Reply
Trainman
Jul 30, 2019 6:42pm
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Quoting longfellow
If the Fed starts cutting, the next crash is going to be unbelievably huge. China is going to say FU all thru next year, until Trump loses (one would think, or hope) the election. [China typically plays the long game and waits out US presidents when negotiating] Bernanke knew the lessons of the last major crash in the Great Depression (75 years prior) and had some ammo to fight it when congress bailed (and wanted it to crash further to hurt the president). Powell seems like he's willing to forget the lessons of the last crash (a mere 10 years ago)...
Yep, agreed. Powell appears to be trying to postpone the next recession/crash until after the 2020 election. The Fed is supposed to stay out of politics, that is the reason why its independent from the government.
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Maxthetrader
Jul 31, 2019 7:16am
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Quoting longfellow
If the Fed starts cutting, the next crash is going to be unbelievably huge. China is going to say FU all thru next year, until Trump loses (one would think, or hope) the election. [China typically plays the long game and waits out US presidents when negotiating] Bernanke knew the lessons of the last major crash in the Great Depression (75 years prior) and had some ammo to fight it when congress bailed (and wanted it to crash further to hurt the president). Powell seems like he's willing to forget the lessons of the last crash (a mere 10 years ago)...
Its never smart to follow the TDS crowd. Fading them is very profitable in the markets.
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Tony112
Jul 30, 2019 4:55pm
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Dow Jones surge
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Ill-b-back
Jul 30, 2019 8:20pm
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Hopefully, this should give GBPUSD a temporary lift so it can be shorted again at a good price.
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Micc23
Jul 31, 2019 3:38am
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"While many economists and strategists believe the Fed will cut rates, not everyone agrees it should in the face of stronger data—and that includes some members of the Fed. One of those, Boston Fed President Eric Rosengren said on CNBC recently that he did not see a reason to cut rates now, given the economy is strong and inflation is nearing the Fed’s 2% target."

This is laughable coming from Boston Fed Eric Rosengren. When Obama was president Rosengren was all in for the Ben Bernanke and Janet Yellen "Quantitative Easing" that Obama and Senate Democrats demanded. Rosengren regularly told Boston newspapers in editorials that the near zero interest rates and massive bond buying was necessary.
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hjs69
Jul 30, 2019 11:31pm
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It is all speculation - trade the chart not the news. Big peeps like to work up everyone for nothing. Like last month, then it focuses on other stuff - trade war bla bla bla. See the pattern.
Reply
Trader#CA27
Jul 30, 2019 10:40pm
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Did Powell say he was gonna cut it 100%?
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ClinicalEx
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