$DIA, $SPY, $QQQ, $RUTX, $VXX
FLASH: Fed officials are getting their stories aligned on the US economy.
Cleveland’s Loretta Mester says it’s in a “very good spot.” Or a “pretty good place,” as Kansas City’s Esther George has it, faithfully echoing Chairman Jerome Powell’s “the economy is good.”
Their remarks, made Tuesday and Wednesday, aim to reassure America that it can be confident in the economy and the central bank’s commitment to keeping it on track. It is a message that has helped calm anxious investors and short-circuit a potentially self-reinforcing Wall Street sell-off that gripped markets late last year.
Policy makers in January backed away from raising interest rates while they assess how headwinds from a cooling global economy and tighter financial conditions affect their otherwise constructive outlook for continuing solid U.S. growth.
That pivot from a stance in December, where their forecasts showed 2 hikes in Y 2019, has eased expectations of further moves, and the accompanying risk that the Fed craters the economy by tightening monetary policy too much.
Investors now see the central bank keeping rates on hold through 2019 with a possible cut next year, and officials are taking great care not to disturb that assessment, at least for now.
Wednesday, the major US stock indexes finished at: DJIA +117.51 at 25543.27, NAS Comp +5.76 at 7420.39, S&P 500+8.30 at 2752.99
Volume: Trade on the NYSE came in at 820-M/shares exchanged
- Russell 2000 +14.4% YTD
- NAS Comp +11.8% YTD
- S&P 500 +9.8% YTD
- DJIA +9.5% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish in here.
Latest posts by Paul Ebeling (see all)
- Asia: Gold, USD, Crude Oil, Stocks & Commodities - June 27, 2019
- Fed’s Dovish Pivot Drives Gold’s Rally - June 27, 2019
- Bitcoin (BTC) Surges, is this Another ‘Climax’ Run? - June 27, 2019