"Most central banks use an inflation target of 2.0 percent.That applies to the core inflation rate. It takes out the effect of food and energy prices. These prices are volatile month-to-month while monetary policy tools are slow-acting. It takes six to eighteen months before an interest rate change impacts the economy.

The Federal Reserve uses the Personal Consumption Expenditure price index to measure inflation. Before January 2012 it used the Consumer Price Index.

The Fed has targets for economic growth and unemployment rates as well. The ideal GDP growth rate is from 2-3 percent. The natural rate of unemployment is from 4.7 percent - 5.8 percent.

It isn't companies that are selling off stock to take profit. But you're right that a lot of money managers will sell off losing positions this time of year in order to harvest tax write offs and not start the next year with a loser on their books. Window dressing.

No one has mentioned China. It was reported a few days ago that the uncertainty with the trade situation with China may be the most serious thing to watch. Most interviewed weren't to concerned about the fed raising rates. Consumer spending and confidence is high with low unemployment.

But consumer confidence is weakening, housing starts dropping , and business inventories weakening.

Not widely reported is that China has reduced or eliminated tariffs on 700 items just in the last few days. But it is correct that the Chinese economy is not doing well

The Markets are DOWN today after the 1000 + Gain Yesterday..TIME March's on...Till we get the Wall !!!

6.5% growth in China. Maybe they need a fed to manage their economy between 2 and 3 % GDP growth?

When I think of Feds I always end up mad. All I know is they ain't Federal. I hear chase, us bank, Rockerfeller, Rothschild and then the trail heads off to Europe, surely people in Europe dont help run the US.

They have a central bank. The People's Bank of China. Of course it is completely controlled by the party.

The 6.5 % is lower than the first two quarters of 2018 and the lowest rate in 9 years.

One also has to ask, how much can we believe what they put out. There are no GAAP rules used in China and the raw data is not available.

[quote=Foxpaw]When I think of Feds I always end up mad. All I know is they ain't Federal. I hear chase, us bank, Rockerfeller, Rothschild and then the trail heads off to Europe, surely people in Europe dont help run the US.[/quote]


You're right. They don't