2020: Fed Last Month Saw a Declining Risk of Recession

2020: Fed Last Month Saw a Declining Risk of Recession

$DIA, $SPY, $QQQ, $RUTX, $VXX

The Trump policies are working to Make and Keep America Great!

The Fed’s FOMC policy making committee saw much less risk of recession at its most recent meeting last month, when it kept interest rates steady after 3 straight cuts and signaled that it expected to keep low rates unchanged through this year.

Mins of the December meeting, released Friday, showed that Fed officials supported keeping rates in a low range of 1.5% to 1.75% to cushion the US economy from slow global growth and lingering trade tensions. Officials were also concerned that inflation has not reached its target of 2%.

Fed officials also noted that the US economy was “showing resilience” despite the trade fight and weak global economy, the mins said. Changes in interest rates also “suggested that the likelihood of a recession occurring over the medium term had fallen noticeably in recent months.”

The Trump policies are working to Make and Keep America Great!

Friday, the major US stock indexes finished at: DJIA -233.92 at 28634.79, NAS Comp -71.42 at 9020.79, S&P 500 -23.00 at 3234.85

Volume: Trade on the NYSE came in at 932-M/shares exchanged

  • NAS Com +0.5% YTD
  • DJIA +0.3% YTD
  • S&P 500 +0.1% YTD
  • Russell 2000 -0.4% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Very Bullish at the week ended 3 January 2020.

Looking ahead: Investors will not receive any notable economic data Monday

Have a terrific weekend

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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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