Tech stocks, spot gold, and bond prices continue to rise as the Fed wraps its two-day meeting Wednesday. Goldman Sachs expects the weaker dollar to bring $300 billion in foreign investment to the U.S. equities market – and tech stocks especially. While Trump walls off U.S. jobs from fleeing offshore, the monetary-fiscal regime is selling…
The Dow Jones surged on Wednesday despite a miserable first-quarter GDP reading. Fed Chair Jerome Powell made the stunning admission that central bank actions were supporting financial markets. Coronavirus treatment optimism boosted sentiment as Gilead Sciences and Dr. Anthony Fauci voiced optimism about the remdesivir drug. The stock market shrugged off a miserable first-quarter GDP…
The Federal Reserve has committed $4 trillion to save the economy. But one analyst says we’re doomed anyway. He argues there’s one critical factor monetary stimulus can’t fix. The Federal Reserve is going billions on this economic and financial crisis. But that figure of speech is actually incorrect. The Fed is going trillions on it.…
The Federal Reserve enacted an emergency rate cut Tuesday morning, triggering a volatile pump-and-dump in the stock market. Bank stocks were disproportionately affected over fears that plunging interest rates would eat away at margins. Rates are destined to return to zero so you shouldn’t believe the Fed when it tells you the economy is “strong.”…
Both the S&P 500 and Dow Jones are attempting to rebound after a brutal selloff last week. The Fed is very likely to aggressively cut rates to support the stock markets. The rate cuts may inspire an immediate bounce but the long-term impact of the virus on the economy may eventually cripple the stock market.…
What’s driving the Fed’s interventions in the repo markets? $500 billion in fresh liquidity is coming over the next month. Major bank failures on the horizon. The Fed just held another oversubscribed repo swap on Monday. Banks offered more than $54 billion in Treasuries and mortgage-backed securities against a $50 billion limit. The rates paid…
