It’s so hard to predict where the sorcery will go next.
Major Wall Street economists were largely in agreement that the Federal Reserve would cut rates by a quarter point heading into the second day of its two-day meeting on Wednesday afternoon.
But after a confusing news conference by the Fed chief, their forecasts for future rate policy are now all over the place.
The Fed cut its key interest rate by a quarter-point for the first time since 2008. But then Powell said after that this was just a “midcycle adjustment,” causing the stock market to drop and rates to firm.
The middle of the greatest “bull market” in human history, when (fake) money is surely in high demand, is just the time to cut interest rates! Let me tell you… What will the Fed do next? Cut ’em again. Again, after that if necessary. They’ll take it as low as they can – and, there is no downward limit – in an attempt to keep the ride going just a little longer. I think they have one of those toy eight balls to help guide their deliberations. Voodoo is more science than art, you know.