Todays numbers seem to point to that which shocked the market somewhat.
.75 increase at the next meeting?
- Thread starter Innervoice
- Start date
The stock market was shocked for a few minutes. But then rallied backed for the next 7 hours.
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MOST likely 00.50, but i don't make predictions, Innervoice.
And i still have my 1907 nickel set. I paid up a bit for those , LOL, but i keep it as reminder NOT to panic sell/LOL. 1907 was panic of 1907
They have a ''V'' like victory on them ; v= also means 5 cents on that US coin.
IMHO, a .75 increase would show he is just flying blind, and doesn't care about an overshoot. A .50 raise and then a strong message about PAUSING for the time being, to let the data he admitted in his previous Fed speech LAGS the effects the hikes have on the economy/inflation data, would show he is prudent to NOT blow up the economy.
Your opinion is the predominant opinion and wrong. Where were all the so called expert like professor seligman of the wharton school , interviewed near a dozen times on cnbc, when rates were near zero and the monetary base was sky rocketing. Did they predict inflation. Now everybody is an expert on Fed policy. and we should slow down in case god forbid we have a recession. All of a sudden recessions are no longer a natural part of the business cycle. Wrong, recessions are necessary to wash out the excesses of the previous boom. The greater the excesses the stronger the recession needed to rid the imbalance of excesses in the economy.
As long as inflation is exceeding interest rates we need to increase interest rates and curb the money supply, in order to go back to a low rate of inflation of 2 per cent.
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.75 increase at the next meeting?
-That will have to depend on the next CPI release which is happening just one day before the Fed rate announcement date. If that CPI number is bad, coupled with today's slightly higher employment number and average earning number, Fed just may MAY increase the pace of rate increase but if that CPI number is docile, especially coupled with the dovish tone that he took with the latest speech, a 0.5 increase is pretty much going to be the maximum he's going to increase the rate to. Most likely though I think the Fed is going to stick with a 0.5 increase. No point rocking the boat so close before Xmas.
-So very busy week for the week of Dec. 11. You have the US CPI on Tuesday, FOMC rate decision on Wednesday and then US retail sales and then ECB CPI, ECB rate decision, UK rate decision and SNB rate decision, THREE central banks publishing rate decisions ALL on Thursday that one day. Brace yourself for LOTS of volatility that week. If you are able to weather the volatility that week and trade well, you are going to have a very good Xmas this year.
-That will have to depend on the next CPI release which is happening just one day before the Fed rate announcement date. If that CPI number is bad, coupled with today's slightly higher employment number and average earning number, Fed just may MAY increase the pace of rate increase but if that CPI number is docile, especially coupled with the dovish tone that he took with the latest speech, a 0.5 increase is pretty much going to be the maximum he's going to increase the rate to. Most likely though I think the Fed is going to stick with a 0.5 increase. No point rocking the boat so close before Xmas.
-So very busy week for the week of Dec. 11. You have the US CPI on Tuesday, FOMC rate decision on Wednesday and then US retail sales and then ECB CPI, ECB rate decision, UK rate decision and SNB rate decision, THREE central banks publishing rate decisions ALL on Thursday that one day. Brace yourself for LOTS of volatility that week. If you are able to weather the volatility that week and trade well, you are going to have a very good Xmas this year.