Re: Stock Market : what does this mean ?
[Re: Steven 49er]
#6409428
12/26/18 04:51 PM
12/26/18 04:51 PM
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The Fed raises rates to slow a growing economy. Wouldn't this be a positive indicator for the economy? More like a positive indicator for inflation. IMHO the FED's biggest impetus for raising rates is so they have a tool available during the next recession. Pretty hard to lower rates when they are at zero. "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.
Who is John Galt?
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Re: Stock Market : what does this mean ?
[Re: white17]
#6410370
12/27/18 02:06 PM
12/27/18 02:06 PM
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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
6.5% growth in China. Maybe they need a fed to manage their economy between 2 and 3 % GDP growth?
Who is John Galt?
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Re: Stock Market : what does this mean ?
[Re: Dirt]
#6410474
12/27/18 04:16 PM
12/27/18 04:16 PM
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Joined: Mar 2007
Posts: 35,460 McGrath, AK
white17
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"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
Joined: Mar 2007
Posts: 35,460
McGrath, AK
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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
6.5% growth in China. Maybe they need a fed to manage their economy between 2 and 3 % GDP growth? 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.
Mean As Nails
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