Negative GDP just what the FOMC needed

[Rickshaw Man]

As backward as it is the markets will see this as a positive....why you ask.
Because the FOMC can keep the current policy in place. Next week they meet
This is the cover they will use to only raise a quarter-point. QE is still going.

 

[Rickshaw Man]

They do not care about inflation, if they did they would have acted forcefully by now....Raising 0.25% is not forcefully with inflation at 8.50%. And we all know it's much higher than that.

 

[nyxtrader]

The fed doesn't care about inflation,.....it's good for our national debt. The comp plan for politicos is tied to inflation. They only reason they care about inflation is because of votes.

 

[RedDuke]

I think you all are wrong. Rates are going higher, much higher

 

[Scataphagos]

They do not care about inflation, if they did they would have acted forcefully by now....Raising 0.25% is not forcefully with inflation at 8.50%. And we all know it's much higher than that.

Maybe not. They say the "worst of both worlds"... "contracting economy + rising rates" = stagflation.

 

[Grantx]

The fed doesn't care about inflation,.....it's good for our national debt. The comp plan for politicos is tied to inflation. They only reason they care about inflation is because of votes.

Exactly. The only way to get rid of debt is to inflate it away.

 

[Scataphagos]

Exactly. The only way to get rid of debt is to inflate it away.

Which is nothing better than a "backhanded default".

 

[Rickshaw Man]

So next week we will find out if my assessment is correct. I think they will use the negative GDP as an excuse to
"monitor the data" they raise a quarter-point and keep QE. All the hawk talk will cease. They may say they care about inflation but they really don't.

 

[nitrene]

No growth + inflation just means the large cap tech trade continues. I went from short to long on the NQ at about 13260. It definitely waffled in the early morning but I thought it would come back strong.

 

[Overnight]

No growth + inflation just means the large cap tech trade continues. I went from short to long on the NQ at about 13260. It definitely waffled in the early morning but I thought it would come back strong.

FAANGM quarterly results are done. They did nothing to lift the N100 complex. The fed is doing the 50 BPS minimum, because as Biden said, "The consumer is still very strong".

That is an invitation for the Fed to raise rates. Hot economy and all that. This is very bad for NQ.