Written by Gary
The SP 500 fell 1.8% after Fed Chair Powell describes rate cut as “insurance” and “mid-cycle adjustment.”the Fed cut its interest rate (SPY -1.1%).
The Market in Perspective
Here are the headlines moving the markets. | |
Fed cuts rates, signals it may not need to do moreThe Federal Reserve cut interest rates on Wednesday to shore up the economy against risks including global weakness, but the head of the U.S. central bank said he did not view the move as the start of a lengthy series of rate cuts. | |
Text of the FOMC statementFollowing is the full text of the statement released by the Federal Reserve’s Federal Open Market Committee on Wednesday following a two-day meeting: | |
U.S. markets gyrate after Fed cuts rates, stocks fallWall Street turned negative after Federal Reserve Chairman Jerome Powell in a press conference after the Fed announced its first rate cut since 2008 characterized it as a mid-cycle policy adjustment, adding that the decision was different from the beginning of a lengthy cutting cycle. | |
Carlyle to give shareholders a vote in switch to corporationCarlyle Group LP emulated its peers on Wednesday with plans to convert from a publicly traded partnership into a corporation, and went one step further by announcing it will become the first U.S. private equity firm to hold shareholder votes. | |
Is Trump the reason the Fed cut rates?U.S. President Donald Trump’s repeated calls for easier monetary policy may not be what drove the Federal Reserve to cut interest rates on Wednesday. | |
Oil rises as U.S. crude stocks fall again, Fed cuts interest ratesOil prices rose for a fifth day on Wednesday following a larger-than-expected drop in U.S. inventories and after the Federal Reserve cut U.S. interest rates for the first time in more than a decade. | |
Dollar up, stocks fall after Fed cut; pound rebound stallsThe dollar index rose on Wednesday and stocks tumbled even as the Federal Reserve cut interest rates after Fed Chairman Jerome Powell said the 25-basis-point cut was not the same as the beginning of a lengthy rate cutting cycle. | |
Dollar at two-year high after Fed cuts rates as expectedThe U.S. dollar rose as high as $1.063 against the euro on Wednesday, its strongest level since May 2017, after the Federal Reserve cut interest rates by 25 basis points as expected. | |
What a Fed rate cut means for your walletThe U.S. Federal Reserve’s decision on Wednesday to lower interest rates may do little to cut some of the costs that matter to many consumers. | |
Market Throws Tantrum At Powell’s “Mid-Cycle Adjustment”Powell over-promised and under-delivered to a market that will “take a mile when given an inch”…
And the result… (Is Powell the lady on the rope or Stallone trying to save us all?) This should help.. | |
Former Presidential Adviser: Free Healthcare For Illegals Would End AmericaAuthored by Paul Joseph Watson via Summit.news, An adviser to two presidents warns that if the United States gives free health care to illegal aliens, as some Democratic candidates advocate, it would be “the end of the country as it now exists.” | |
One And Done? A Stunned Wall Street Reacts To PowellIf one had to summarize Powell’s press conference, in which he was so dazed and confused after facing a barrage of questions forcing him to explain just why he is cutting rates now when in the Fed’s own words the US economy is doing great and “confidence is rebounding”, and just what a mere 25bps “insurance” cut will achieve that it was painfully uncomfortable to watch, it was with the following two quotes: POWELL: THIS ISN’T THE START OF A LONG SERIES OF RATE CUTS … but POWELL: I DIDN’T SAY IT’S JUST ONE RATE CUT And as markets shook, stunned by Powell’s revelation that today’s rate cut was just a “mid-cycle adjustment”, with the Dow Jones plunging briefly by over 400 points as hopes for an easing cycle were promptly dashed, Wall Street analysts sent out their hot takes of what Powell just did and said. Courtesy of Bloomberg here are some of the most notable responses, besides today’s winner from Chris Rupkey of course: Delores Rubin, a senior equity trader at Deutsche Bank Wealth Management
Zhiwei Ren, Penn Mutual Asset Management portfolio manager.
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Bin Laden’s Son – An ‘Emerging Al Qaeda Leader’ – Reported DeadHours after Reuters reported that the Saudi Binladin Group is looking to restructure between $20 and $30 billion in debt, the infamous construction family was hit with the news that son and potential successor of al Qaeda leader Osama Bin Laden is dead, according to NBC News, citing three US officials regarding intelligence obtained by the United States. It is unclear whether the US played a role in the death of Hamza bin Laden, who was approximately 30-years-old. | |
Some very hungry cows may rescue India from a giant sugar glutSome very hungry cows may rescue India from a giant sugar glutIndia swings between being a sugar importer and exporter, depending on the size of local output. | |
Guess who’s gaining from Ola, Uber’s painGuess who’s gaining from Ola, Uber’s pain The Bengaluru-based scooter sharing apps claim they are doing a little more than 1,00,000 rides a day combined. | |
Outlawing Triple Talaq fits the bill for BJP?Outlawing Triple Talaq fits the bill for BJP?Like all parties, BJP ‘cares’ for a section only because, and till the point, this section serves its purpose. | |
31 July 2019 FOMC Meeting Statement: Federal Funds Rate Lowered and Will Stop Reducing HoldingsWritten by Steven Hansen The Federal Open Market Committee (FOMC) – the board of directors of the Federal Reserve lowered the range of the federal funds rate by a quarter-point as expected, and stated:
Overall the Fed appears to believe the economy has weakened since the last meeting. | |
Thousands of scammed student-loan borrowers filed claims for debt relief — the feds haven’t approved any in over a yearThat’s according to data from the agency obtained by Democratic Senator Patty Murray’s office. | |
Earnings Results: Fitbit stock falls after Versa Lite disappointment prompts lowered outlookFitbit Inc. shares dropped in after-hours trading Wednesday after the company reported better-than-expected second-quarter results on Wednesday but delivered a downbeat forecast for the current period due to the weak performance of its lower-priced Versa Lite smartwatch. | |
Why Republican baby boomers are more likely to share #fakenews on FacebookSocial media doesn’t help people differentiate what is real from what is fake. |
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