Post by
FastTrade on Dec 16, 2023 3:14am
When the Fed speaks-trained seals respond - for now.
To dissect the take on reasoning by the Fed for lowering interest rates in the Spring of 2024 a bit further, never-mind the latest Fed flip-flop talking out of both sides of their mouths which they are good at and have put out there to stem the latest market enthusiasm somewhat. Just more Fed-speak and the kind of nonsense without real substance they employ to steer the markets their way. The other issue in supporting the Dems being a must for re-election aside from propping up the economy and avoiding a recession comes into play with the banks. - Bailing out the Banks - becomes yet again the central issue in March 2024 1 year after the March 2023 bank crisis fix.
With the deadline for repayment by those banks coming due which they will fail to (a no brainer from the start in March of 2023) will the Fed let the government take the black eye in the 2024 election year by letting the banks fail, this/the next time around?. Not in an election year they won't and the Fed is not about to bite the hand that feeds at any rate.
Interest rates and QE are being telegraphed by the Fed now regardless of the current flip flop Fed-speak to quell market enthusiasm prompting the latest market confusion just 1 day ago.
The Fed will go ahead with rate cuts and QE in the Spring nevertheless it being an election year. They are going to bail out the banks again and temporarily prop up the markets and economy at least until November with sights set on getting the Dems re-elected.
To no avail is the subterfuge of better times to be artificially created by the Fed going to last. The artificial Fed fix of lowering rates and shifting back to QE won't prevail for long before inflation comes roaring back with a vengeance after the next US election.
Comment by
Frankystars on Dec 16, 2023 8:33am
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