Commentary: Accommodative Fed Strikes Again
The ability of equities to hold up in spite of
various FOMC shifts is a testament to Yellen
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COMMENTARY: Wednesday, September 17, 2014
As we have noted quite a few times, there is quite a lot to be said for the potential economic and geopolitical pitfalls facing the equities… even the upside leader US equities. However, the continued accommodation from the FOMC today is a sustained friendly influence. Especially in light of a couple of factors noted below, it seems the Fed is maintaining an ‘endless easing’ syndrome due to its sensitivity to the relative weakness of what is now a somewhat extended cyclical recovery.
The degree to which they have now downgraded various aspects of their forecasts (economic and employment) leaves the door open to more future easy policy than is consistent with their continued fear (and desire) that inflation will normalize. What we know for sure is that their lack of expectation they’ll see that anytime soon continues to support the US (and other) government bond markets to some degree in spite of the continued equities rally. And govvies will be in a critical state late this week (more below.)
Authorized Gold and Platinum Subscribers Click ‘Read more…’ (below) to access the balance of the Commentary and Conclusion. Silver and Sterling Subscribers Click ‘Read more…’ (below) to access the balance of the Commentary discussion.
[As markets are significantly conforming to our early Wednesday Global View TrendView Video analysis, we suggest Gold and Platinum echelon subscribers access those trend views for more technical detail if they wish.]