This week the Fed announced it had to stop its “QT” bond run-off program and that it would NOT raise rates anymore in 2019. The stock market drop last year, economic weakness, and Trump bash mouth has caused the Federal Reserve to turn totally dovish. It’s really though a sign of a failure to accomplish the goals of normalizing the Fed balance sheet. I talked about these developments with Jim Goddard of www.howestreet.com.
Stocks dipped a little on worries about the economy right after the meeting, but rallied strong yesterday.
Now the Fed Fund futures are pricing in a 35% chance of a Fed CUT before the year is over. Is that a good thing or a bad thing for the stock market?
For more of our top stories for today go to the home page www.wallstreetwindow.com.
