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3 weeks ago
On Wednesday, the Federal Reserve announced that it will keep the U.S. benchmark interest rate between 2.25% and 2.5%.
The Fed cited a lack of inflation in the U.S. economy, with vulnerabilities moderate, as reasons that it will keep rates unchanged.
What say you? Does it need to be left unchanged, lowered, or raised?
Also, today, the U.S. manufacturing index shows that activity is slowing in that sector the most since 2016. Fed says that it expected it and in fact, manufacturing around the world is slowing.
Powell says the resolution of the uncertainty of the trade barriers would benefit businesses. But, he says the impact may not be seen overnight.
Marketeye thinks that the agmarkets would react right away. So, where am I wrong here?
3 weeks ago
If interest rates were raised on top of everything else, the sheriff really would be looking for me I kind of follow Peter Schiff (the good Schiff)and he`s said all along that the Fed couldn`t raise rates, because with the national debt and public & private debt it would slam us into a recession if costs rose in servicing all of that. Rates were going up and I was thinking "maybe they want a depression?" and I was spooked. But, thank God cooler heads prevailed and they stopped the nonsense. The Keynesian economy is built on debt, the Dow hears "raise interest rates" and it goes down, they talk about not raising rates and the market trade thinks "the economy isn`t strong enough for a rate hike and the markets go down. But after they digest the news, stocks go into record territory again.
The Paul Volker interest rates in the 1980`s (20%) was what caused the farm crisis. Farm commodities were actually quite good, there wasn`t much legal businesses could do and pay 20% on money. But we whipped inflation...yeah wooo hoo
2 weeks ago
Sure, tariff foreign money that comes into US agriculture. Look at the Dutch based Rabobank, how much did their unnatural flow of money contribute to the glut in the US dairy industry?