The Fed and Economic Divergences

[ByLoSellHi]

If they don't raise rates, the dollar will plunge further.

That will cause foreign creditors to divest their treasury note holdings even more so.

Net result - The FOMC will have to raise rates anyways, if they hope to sell any more debt at auction.

Watch. They'll say the economy is robust, even though they know anyone with 1/2 a brain knows what they're really saying is "we can't afford to loosen rates."

 

[Joab]

Quote from ByLoSellHi:

If they don't raise rates, the dollar will plunge further.

That will cause foreign creditors to divest their treasury note holdings even more so.

Net result - The FOMC will have to raise rates anyways, if they hope to sell any more debt at auction.

Watch. They'll say the economy is robust, even though they know anyone with 1/2 a brain knows what they're really saying is "we can't afford to loosen rates."

I agree.

We haven't seen a FOMC surprise in years and we are due.

 

[Joab]

Quote from NihabaAshi:

Extra volatility in comparison to past FOMC announcements.

Mark

Mark

You win the prize

We sure did get volatility

 

[rhymeswithorang]

"All arguments that the economy is slowing so ... now we have divergence."

Whose arguments? Yours? The May ISM level suggested above trend growth for example. The stock market is a leading indicator (component of LEI). Maybe your assessment is wrong.

 

[daddyeaux]

the economy is slowing but it's taking more J-curve borrowing to support it......

me no like......