In today’s FOMC Statement the Fed says the labor market has strengthened, household spending is growing strongly, and economic activity is expanding at a moderate rate.
Let’s see what the market thinks of that assessment.
Commodities Reaction to FOMC Statement
Gold Up, Silver Up, Oil and Copper Down
Bond Reaction to FOMC Statement
US Treasury Yields Lower
US Dollar Reaction to FOMC Statement
US Dollar Down Slightly
Oil Reaction to FOMC Statement
Crude, Gasoline, Natural Gas, Ethanol: All Lower
Rate Hike Odds
Rate Hike Odds Lower
Dear Janet, Which One of These Doesn’t Fit In?
- Gold Up, Silver Up, Copper Down
- US Treasury Yields Lower
- US Dollar Down
- Crude, Gasoline, Natural Gas, Ethanol: All Lower
- Rate Hike Odds Lower
- Economy and Labor Market Strengthening
Mike “Mish” Shedlock
#6
It would appear that the Fed’s “credibility” has sunk to the point where the market now reacts to the exact opposite of what the FOMC Statement says.
Such a succinct summary… thank you for helping a layperson, like myself, understand the situation.
How about a $12,000 Armani potato sack with sleeves, at a rally supporting the poor?
http://www.acting-man.com/blog/media/2016/07/Hillarmani-663×1024.jpg
From ActingMan blog
http://www.acting-man.com/?p=46003
Maybe Janet had a sneak preview of BEA’s Q2 GDP release Friday.
Actually, the story Friday will be BEA’s revision of GDP from 2013 thru Q1 2016. FINALLY, we’ll find out those reworked construction numbers.
People are confusing the Economy(with it’s ups and downs) versus the definition of money(basically just accounting and math.)
The math(accounting) is driving negative rates and currency higher(gold and dollars). The value of all assets is driving lower, driving insolvency, driving rates lower and currency demand higher.
Until this is resolved(insolvency) then we are in a Deflationary Debt Depression, like Japan, for a looonnnngggg time.
Renting Debt is getting cheaper and cheaper if not profitable, if you can get it. As long as negative rate beats loss of asset value(commodities, assets etc.) FED trying to reflate or hold the line on 2 fronts. Stocks and Housing…barely
It’s called Fed Open Mouth policy. Doesn’t work like it used to.
I vote for #5.
The BS gets thicker and thicker; just don’t make waves.
Bankers were expensive suits to make you think their bank us full of cash. Truthfully they bet your deposit on the NYSE ponies and they don’t have any money in the bank. All banksters are liars.
Would appear this is more of a Government function these daze actually.
Where people get the idea “not having a gold standard is bad for Banking” is beyond me.
They know where every single dollar is buried.
It’s Wall Street and their hack political cronies who are speculating wildly in a world where they “feel” they are defining money. (The MOAR the merrier would appear.)
Well…, hey…Southside Johnny…that’s the entire City of Houston that blew up today.
I’m unaware of any “Wall Street mitigation strategy” for said “Detroit Effect” but the Banks ain’t loan sharking Yo Mama if the politicians A-ok dropping a financial nuke on Texas.
In other words gold standards DEFINE budgeting in the World of Public Sector Finance.
Certain risks…like say the American exit from Vietnam…can be calculated (Linebacker 1 and Linebacker 2 for example.)
Good luck quantifying “a War on Terror.” Moar becoming Woar is not a quantifiable event…though most certainly it is a monetary phenomenon there Dick Nixon!
To summarize “treasuries might be blind to the inflation” but if you’ve got a 20 billion dollar “blockbuster drug” under development and … well, “it doesn’t pan out”…you just can’t print as a Company “the 20 billion.”
You can have the Federal Government deny care as Policy of course…literally “die off” the Citizenry.
An odd way to blow through a Cool Trillion.
In other words The Corporations™ will start reporting massive losses with more than just “revenue recognition errors” from the C Suite.
I’m sure the Fed can just blow another bubble and make everything all swanky again of course…cuz like, it’s not like everyone is just trend following again on Wall Street. (Insert Facebook, Netflix, Amazon, Tesla here…
blocked
# 11