Federal Reserve

There's One Missing Ingredient From The Market Rally 'Recipe'

It’s great when a plan comes together. The recipe for the whole move since Election Day is easy. Take one part new Administration with expansive plans to boost the US economy. Add in 2 measures of a Federal Reserve confident enough in existing macro growth to boost interest rates. Add a dollop of money flows. Seems perfect, but there is one thing missing: the analysts who actually cover companies and make earnings forecasts aren’t buying it.

3 Things: Fed Hike, Fed Late, Fed Miss

“The simple message is the economy is doing well. We have confidence in the robustness of the economy and its resilience to shocks.” – Janet Yellen, March 15, 2017.

Really?

Frontrunning: March 16

  • Fed's 'dovish hike' sends shares to record highs, dollar dips (Reuters); Markets Rally After Fed Rate Increase Decision (BBG)
  • Yellen Calms Fears Fed’s Policy Trigger Finger Is Getting Itchy (BBG)
  • Europe Gets Reprieve in Dutch Election, But the Center Fragments (BBG); Relief in EU capitals as Dutch PM sees off far-right's Wilders (Reuters)
  • Trump's first budget: military wins; environment, aid lose (Reuters)
  • Trump Says He Based Charge of Obama Wiretapping on Media Reports (BBG)

Global Stocks Soar To Record Highs On "Dovish" Fed, Dutch Vote

World stock indexes surged to record highs on Thursday while the dollar traded close to a one-month low after the Federal Reserve hiked U.S. interest rates but signaled no pick-up in the pace of tightening, while the Dutch elections were broadly interpreted as a drop in support for Europe's anti-establishment powers.

The US Is About To Hit $20 Trillion In Debt: Here's How It Affects You

As the vulture pundits in the mainstream media pick apart hollow political scandals, the essential bankruptcy of the federal government looms just ahead. The national debt is creeping toward 20 trillion dollars, and the United State’s largest problem is once again staring the world in the face.

Janet Yellen Explains Why She Hiked In A 0.9% GDP Quarter: Live Webcast

Putting the Federal Reserve's third rate hike in 11 years into context, if the Atlanta Fed's forecast is accurate, 0.9% GDP would mark the weakest quarter since 1987 in which rates were raised, according to Julian Emanuel at UBS. We look forward to Ms. Yellen explaining her reasoning - Inflation no longer "transitory"? Asset prices in a bubble? Because we want to crush Trump's economic policies? Because the banks told us to?