Fed Will Fade, Halt Interest Rate Hikes After December

Fed Will Fade, Halt Interest Rate Hikes After December

Fed Will Fade, Halt Interest Rate Hikes After December

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

Jim Cramer says Fed Chairman Jerome Powell will hike interest rates once more in December and then stop.

“I just think he’s going to blink,” Mr. Cramer said on TV Monday

“It’s going to be 1 and done in December. That’s what I’m saying is happening,” he added. “And then he is going to pause,” Mr. Cramer predicted about additional rate hikes.

The Fed has indicated 1 more hike this year then 3 in Y 2019 and 1 or 2 after that.

Meanwhile, the steady pace of US economic growth, supported in part by monetary policy, is consistent with the Fed’s plan to continue gradually lifting interest rates, said Raphael Bostic, President of the Federal Reserve Bank of Atlanta.

“We’ve seen the economy continue to strengthen and continue to perform in a very positive way,” Mr. Bostic, a voting member of the Fed’s committee that sets interest rates, said during a community conversation at the Atlanta bank’s headquarters Saturday.

He said it’s been more than nine years since the recession ended and the goal of policymakers is “to try to keep this going as long as possible.”

Even after recent increases, the Fed’s Key overnight lending rate is set at a range of 2 to 2.25%, still below the 2.5 to 3% range that the Fed considers neutral because it neither stimulates nor restrains growth, Mr. Bostic said. “There’s still a couple more moves that are left,” he said.

The economy has been expanding since the end of the recession in mid-2009, helping drive unemployment to a 48-year low. President Donald Trump recently stepped up criticism of the central bank’s moves to raise interest rates to keep growth from triggering an increase in inflation, saying “the Fed has gone crazy” and blaming it for stock-market losses.

Monday, the major US stock market indexes finished at: DJIA -126.93 at 25317.41, NAS Comp +19.60 at 7468.82, S&P 500 -11.90 at 2756.02

Volume: Trade on the NYSE came in at 750-M shares exchanged on the day.

  • NAS Comp +8.2% YTD
  • S&P 500 +3.1% YTD
  • DJIA +2.4% YTD
  • Russell 2000 +0.3% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
22 October 2018 QQQ 174.1 Bearish (-0.25) 169.65 174.74
22 October 2018 DIA 253.93 Bearish (-0.30) 253.74 254.89
22 October 2018 SPY 275.67 Bearish (-0.40) 273.96 279.48

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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