In 2018, the US Fed had stated that there would be up to three Interest Rate hikes in 2019. Today the Fed announced that there will not be any Interest rate Hikes in 2019. Yes, they seem to have reversed course.
IMHO I believe this is smoke and mirrors. The Price of Oil has had a price breakout upwards. Expect to pay MORE for fuel. That will spark Inflation again, just as it had last year. When the Rate of Inflation goes up, then the US Fed will raise Interest Rates.
Video is courtesy of the TheoTrade, LLC YouTube channel
Posted by: Vincent Banial
Back in Dec I called that the upcoming stock market rally would be a “Sucker Rally“, which would allow deeper pockets to off load their stock holdings. BlackRock’s Chief Equity Strategist Kate Moore called it a “Risk Rally” when she recently stated “A lot of the investors within BlackRock and around the street have been using the big rally in stocks as an opportunity to fade some risk, and rebalancing portfolios. I’d be hard pressed to come up with a segment of our clients that was buying aggressively into this risk rally,”.
Video is courtesy of the Sprott Media YouTube channel
The US Fed will be holding meetings for the next two days. They will continue to raise Interest Rates again this year. I’m just not sure if they will have a rate increase now or wait till later this year. The key excuse of raising Interest Rates is to fight Inflationary Pressure.
I have noted that Gasoline prices have stopped going down and IMHO have started to reverse back upwards. The price of fuel impacts the price of all goods sold, as those goods have to be transported. Raise the price of fuel and you trigger an increase in the Rate of Inflation. That theme was used last year to trigger Inflation Growth to help justify the increases in Internet Rates. It worked until it impacted the Stock Markets last December.
When Interest Rates are increased once more, that will imho trigger a Stock Market correction which will lead into a Major Recession. 2019 should see Stock Market and Economic changes of Historic Proportions.
Video is courtesy of the CNBC YouTube channel
Beware the Ides of March.
Click on this link to visit the Reuters website to read their article titled “
Video courtesy of the Wochit News YouTube channel
Just another sign that the US is heading towards a Recession in 2019. In the US, Home Sales FELL dramatically by 6.4% in December 2018.
Watch Home Sales plunge further, when the next FED Interest Hike is announced later in 2019.
Video is courtesy of the CNBC Television YouTube channel
Click on this link to visit the AP News website to read their article titled “US home sales plummeted 6.4 percent in December“.