“Fed Raising Rates Too Fast”

 “Fed Raising Rates Too Fast”

“Fed Raising Rates Too Fast”

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

Tuesday, President Donald Trump criticized the Fed saying it is going too fast in raising rates when inflation is minimal and government data points to a strong economy.

“Well, I like to see low interest rates. The Fed is doing what it thinks is necessary but I don’t like what they’re doing because we have inflation really checked, and we have a lot of good things happening,” President Trump said to reporters on the White House lawn before departing for an Iowa event. “I just don’t think it’s necessary to go as fast.”

The Federal Reserve last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least 3 more years of economic growth.

The Fed is mandated by Congress to aim for low inflation and low unemployment. Currently US consumer price inflation is above 2% annually and the unemployment rate is the lowest in about 40 years

“Also, very importantly I think, the numbers we’re producing are record-setting,” President Trump added. “I do not want to slow it down, even a little bit, especially when you don’t have the problem of inflation. And you don’t see that inflation coming back. Now, at some point it will and you go up.”

President Trump has publicly stated his concerns before, but Tuesday said he had not discussed them personally with Fed Chairman Jerome Powell, explaining that “I like to stay uninvolved.”

Tuesday, the US major stock market indexes finished at: DJIA -56.21 at 26430.57, NAS Comp +2.07 at 7738.21, S&P 500 -4.09 at 2880.18

Volume: Trade on the NYSE came in at 806-M/shares exchanged

  • NAS Comp +12.1% YTD
  • S&P 500 +7.7% YTD
  • DJIA +7.0% YTD
  • Russell 2000 +5.6% YTD

HeffX-LTN US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
9 October 2018 QQQ 179.81 Neutral (-0.05) 179.31 180.78
9 October 2018 DIA 264.30 Very Bullish (0.51) 264.66 267.45
9 October 2018 SPY 288.02 Neutral (0.16) 287.19 290.87

 

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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