Can someone summarize the significance of Fed’s yesterday’s decision? I have trouble wrapping my head around it and the media is making a big deal about it. Tanks, happy weekend!
Basically we’re gonna be the new China.
So buy gold. Buy lots of gold.
rates will remain low for a long time.
jobs are most important. max employment specifically.
dont care as much about higher inflation in short term.
its all fascinating really. fiscal policy is no longer aligning with accomodative monetary policy since house and wh is at an impasse. powell wants govt to spend money now. he is essentially saying he will buy up whatever the government wants to spend imo. unfortuantely we are very likely going to hit a govt shutdown soon and a lack of stimulus due to politics. anyways it makes sense for us to inflate the debt away. is a good ting
I was operating under the assumption we are in this current Fed positioning through 2025, hence my bullishness. I think the Fed announcement basically confirmed it so the market jumped on board. It’s not just that, this comes as people are warming up to looming vaccine news as well so I think there are a couple catalysts floating around out there.
its the right move. imo the key to a brighter future is productivity and full employment is the most important thing. inflation should be an after thought. a weak dollar is important especially since american business is no longer competitive. the government needs to do handouts right now while everything is shut down. preferablly to me.