The new trend of 'Woke Capital', has many free-marketers scratching their heads at how corporate America has hopped on board this wave of Progressivism...
Maybe the rate cut was meant as much to give policymakers something to feel good about for themselves. It certainly has done nothing as far as markets go...
Officials are gearing up to reduce interest rates at their next policy meeting in two weeks, most likely by a quarter-percentage point, as the trade war between the U.S. and China darkens the global economic outlook.
Here comes another paradox: on one hand, the Beige Book describes an economy that is expanding "modestly", and is overall in great shape. On the other, the Fed is widely expected to cut rates by at least 25bps in two weeks...
The premise for China's new strategy is two-fold: (1) frictions between the US and China have gone far beyond trade, reducing China's potential gains in a trade deal; and (2) damage from the higher US tariffs to China's economy has been manageable.
The worst case scenario would be if the market meets the Fed's efforts at easing restraint by an even deeper inversion of the yield curve. This would be immediately read as another "policy error" reaction.
"Unfortunately, the young socialists are uninterested in truths. Not when the goal of hard work and paying one’s way in life has been reduced to a game for suckers. Not when apathy and a life on the dole is filled with such hollow promise."
The roadmap that has been in place for the US economy for the last year is almost certainly going to continue. That means a recessionary or stagflationary state is coming.
