The US Economy at Risk, Continued Low Interest Needed

The US Economy at Risk, Continued Low Interest Needed

The US Economy at Risk, Continued Low Interest Needed

$DIA, $SPY, $QQQ, $VXX

The US economy is at increasing risk of becoming trapped in a prolonged phase of slow growth that points to the need for lower interest rates than previously expected, US Fed policymaker Jerome Powell said in an interview Monday.

Mr. Powell, a member of the Federal Reserve Board of Governors, says that he favors a “very gradual” path for any rises as US economic outlook was dogged by global risks.

“The probability of an era of weaker growth, lower potential growth – that worries me more than it used to,” he was quoted as saying in Monday’s edition of the newspaper.

“With inflation below target, I think we can be patient.”

On the other hand, Monday Donald Trump cast the Obama Administration and Hillary Clinton’s economic program as an ineffective relic.

“We now begin a great national conversation about economic renewal for America,” Mr. Trump said in a speech to the Detroit Economic Club, urging a return to his “America 1st” governing vision.

“The city of Detroit is the living, breathing example of my opponent’s failed economic agenda,” Donald Trump said.

The GOP nominee proposed a temporary moratorium on new agency regulations, and a massive Reaganesq tax reform plan to trigger economic growth in the US.

There can be no growth without inflation and higher rates.

Monday, the major US major stock market indexes finished at: DJIA -14.24 at 18529.29, NAS Comp -7.98 at 5213.14, S&P 500 -1.98at 2180.89

Volume: Trade was light with about 773-M/shares exchanged on the NYSE

  • Russell 2000 +8.3% YTD
  • S&P 500 +6.7% YTD
  • DJIA +6.3% YTD
  • NAS Comp +4.1% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.32) Neutral (0.18) Bullish (0.46) Bullish (0.33)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.28) Neutral (0.21) Bullish (0.29) Bullish (0.33)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.27) Neutral (0.20) Bullish (0.40) Neutral (0.22)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.36) Bearish (-0.29) Very Bearish (-0.51) Bearish (-0.29)

Stay tuned…

 

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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