There Was No Need for a Rate Cut

On Wednesday, Federal Reserve Chairman Jerome Powell announced that the Fed had decided to cut interest rates by .25 basis points. The market was expecting .50 basis points and immediately sold off. In fact, the S&P 500 had its first breakout move above or below 1% in thirty-eight trading sessions...

By | August, 5, 2019|Categories: Articles, Featured|Tags: , , , , , , , , |0 Comments

Danielle DiMartino Booth

‘Tis the season for bunnies, baskets and bill auctions. Wait – one of those did not belong. And yet, April will herald Treasury bill auctions that put optimists’ posits to the test. Is the spike in short rates a technical glitch that will right itself or is there an underlying issue?

Danielle DiMartino Booth

Riding the daily ups and downs in the stock market is akin to landing in full-blown thundersnow at La Guardia (where do the meteorologists come up with these colorful terms?) It’s as if we weren’t reading about the record calm that had lulled markets into a gravity-defying comatose state just months ago. In the space of one calendar quarter, we now find ourselves reading headlines declaring 2018 to be one of the most volatile on record...

By | March, 7, 2018|Categories: Articles, Featured|Tags: , , , , , , |0 Comments

Danielle DiMartino Booth

After ten years, is the time finally upon us? We will soon enough know. Today marks the first Minutes release that carries the promise of cleanliness. As I’ve written to on multiple occasions, in disapproval mind you, in 2008, Janet Yellen suggested that the FOMC Meeting Minutes be manipulated to massage the intended message the FOMC should have conveyed...

By | February, 22, 2018|Categories: Articles, Featured|Tags: , , , , , , , |0 Comments

Danielle DiMartino Booth

Whither stagflation? Say it isn’t so! Like it or not, the unrounded core inflation for January came in closer to a gain of 0.4%. In other words, look for the year-over-year rate’s next stop to be 1.9%. What could offset this march upwards? New car prices fell month-over-month and year-over-year. This trend should accelerate as millions of SUVs come off lease this year. The question is, does the threat of rising inflation become a self-fulfilling prophesy?