The US Federal Reserve has signaled to financial markets that it wants to pause further monetary policy tightening for some time. Investors, however, take a somewhat different view of what the Fed is going to do: They assume that the Fed’s interest rates hiking cycle has come to an end.
— Read on mises.org/wire/fed-moving-take-even-more-control-debt-markets-and-interest-rates
In an ideal world, we wouldn’t have to read the Federal Reserve’s rabbit entrails to discern the economy.
— Read on www.mauldineconomics.com/frontlinethoughts/the-fed-is-playing-a-dangerous-game
After two years of a lot of aggressive-sounding talk about reducing the Fed’s balance sheet and raising the target interest rate, the Fed in recent weeks has reversed itself, and declared that now’s a time to take things more slowly. At the January FOMC meeting, officials:
— Read on mises.org/power-market/central-banks-get-scared-forget-about-promises-reduce-balance-sheets
What the Fed Actually Said About Ending the QE Unwind | Wolf Street
— Read on wolfstreet.com/2019/02/21/what-the-fed-actually-said-about-ending-the-qe-unwind/
The latest spin
Fed’s Powell: Balance Sheet to be “Substantially Smaller.” How Small? He Gave Big Clues. My Dive into the Dynamics & Charts | Wolf Street
— Read on wolfstreet.com/2019/01/11/feds-powell-balance-sheet-to-be-substantially-smaller-how-small-he-gave-big-clues-my-dive-into-dynamics-w-charts/
Rally in Stocks Takes Heat Off Fed, Now They Talk Rate Hikes Again, Market Expectation of a Rate Hike Spikes | Wolf Street
— Read on wolfstreet.com/2019/01/09/stock-market-rally-takes-heat-off-fed-now-they-talk-rate-hikes-again-market-expectation-of-a-rate-hike-spikes/
Th fed does not want an overhead economy or too much inflation
Fed’s Balance Sheet Reduction Reaches $402 Billion | Wolf Street
— Read on wolfstreet.com/2019/01/04/feds-balance-sheet-reduction-reaches-402-billion/
It needs to happen
The Best in uncensored news, information, and analysis
— Read on www.blacklistednews.com/
Last week. I argued Jerome Powell did the right thing by raising rates a mere 25 basis points. He forcefully declared the Fed’s independence from the market and politicians for the first time since Volcker.
— Read on www.mauldineconomics.com/frontlinethoughts/bear-markets-fed-mistakes-and-quick-shots-from-john
QUESTION: Mr. Armstrong; A spectacular call. You gave the day and the market bottomed within 100 points of your number. You always nail it. I find it curious how they blamed Trump and the Fed. Can Trump fire the head of the Fed? I really think he seriously needs to attend your WEC. He would have seen this move coming. Congrats! FG ANSWER: No. President Trump’s comments about firing Federal Reserve Chairman Jerome Powell are really off the wall. The problem is he has the classic TV talking heads view that stocks will crash with higher interest rates. Trump’s frustration with the central bank chief intensified following the interest-rate increase and months of stock-market losses. He is oblivious to the real crisis which is the low-interest rates are destroying the pension funds. Meanwhile, the media blames Trump for his tweets and the talking heads attribute the decline to interest rates. Powell cannot publicly state why rates have to rise or he would create a real debt panic. Trump is clueless as is Capitol Hill with the monumental crisis in global debt. For now, the news will bash the stocks when down, and when investors/traders see there can be no flight to bonds as quality, the real panic will begin. I wish I could reverse this mess, but reality states Trump’s handlers are rooting for the Deep State and would never let me near him. The Democrats want the stocks to crash for they can blame Trump and try to win the losers to vote for their team. The shame here is this is not about running the nation or the economy to benefit all, it is just about winning the 2020 election. Since the ECM turns in January 2020 rather than the elections in November 2020, this is indicating that we may have a psychological shift prior to the elections.
— Read on www.armstrongeconomics.com/international-news/politics/trump-v-the-federal-reserve/
The rise in interest rates will mean that banks can start paying interest on savings at guaranteed rates for specific dates, six months, one year etc. This will create real wealth and stop the need for endless money printing and risky investments. A win win for everyone except shaky derivatives and those who deal in them.
John Barleycorn 
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