RE:RE:Morning headfake?Yesterday's action confirms that a risk of recession is far worse than higher inflation. The strong US jobs data indicates a strong economy so the liklihood for the FED to cut now in June is diminishing by the day. There are 5 more FED meetings left...
June 12 (unlikely)
July 31 (possible)
Sept 18 (unlikely due to election)
Nov 7 (possible)
Dec 18 (possible)
The wish to cut 3x is still possible, but narrowing each month. Canada's economy, on the other hand, is slowing with unemployment pushing 6.1%. The BoC will now likely need to ink a June cut to avoid a recession. It will hurt our dollar and add to inflation but with current inflation under 3% I believe they are willing to take that gamble.
ABP123 wrote: For about a minuit at around 2 PM, it looked like we might be heading in that direction. I too thought we might be going for the headfake. I don't know what to make of this market. I have some cash to buy, but I don't know what to buy. I have only done a little selling, really just cleaning up some end trails in my portfolio. I guess next week's hurdle is another US inflation report. The Canadian jobs numbers have pretty well put a BOC June cut in the bag.
Is it just me, or does anyone else think the US Fed is trying to "Handle The Market" by bringing out its governors one by one almost daily (one or two each day) and having them make comments? Some of them even contradictory to each other.