The Fed is playing a game of chess with an inevitable outcome but refusing to concede.
They cannot raise rates any further without putting the financial system and the US government's ability to perpetually issue ever expanding debt at risk . They cannot lower rates without stoking the flames of inflation. All they can do is jawbone and guide future lower rates, but not too low and not too quick.
Checkmate is inevitable.
Europe's follies are certainly working to the Fed's benefit right now. When it comes to money, you just have to be the least stinky shirt in the laundry.
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What a mess.
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How's whatever Canada uses for money (barrels of maple syrup, I assume) doing?
We never hear anything about your stupid central bank.
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They held rates as well. Can dollar is weak but stable over the past year.
I don't eat much maple syrup but we do make very good maple syrup.
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They have a few more moves before the checkmate and the question is whether they can accept the loss with dignity or will try to drag everyone to the bottom with them
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Good points.
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I'm afraid the latter will be the case 😥 what do you think?
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I gotta give Powell weasel points today. They publish the dots plot, which supposedly represents the consensus predictions, then tells everyone to ignore the dots plot during the press conference. It's a game of make believe, and everyone knows it.
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