The Fed, interest rates, and bubbles

[tsptalk]

I know. They screwed up late last year. Maybe it's the inverted yield curve now.

https://www.lombardiletter.com/the-...ise-index-signals-a-possible-recession/14499/

 

[FireWeatherMet]

So the Fed went from 2-3 rate hikes in 2019, to nothing and then to possible rate CUTS?

The biggest concern for the Fed a few months ago, was that its gun chambers are too close to being out of bullets (available rate cuts).
So now, with No Recession in sight and the economy roaring (according to the Administration)...the Fed is suddenly willing to fire its few remaining bullets?
For what? because of politically, self induced news driven damage to the stock market (threats of tariffs and trade war)?

I think this was sort of what Greenspan was warning about a year or 2 ago. :worried:

 

[tsptalk]

‘Collapsing’ inflation indicators will force the Fed to cut rates as early as this month, Wall Street bull Tony Dwyer says

“The market is going to force them into it,” he told CNBC’s “Trading Nation ” on Monday. “All the inflation indicators are collapsing. That is telling them they have room to ease.”

https://www.cnbc.com/2019/06/04/dont-rule-out-a-june-rate-cut-market-bull-tony-dwyer-says.html

 

[tsptalk]

The Fed, interest rates, and bubbles - from John Hussman...

Source: https://www.hussmanfunds.com/comment/mc190408/