Dow Sheds Over 400 Points Amid Rate-Hike Fears...Remember the Fed Called Inflation 'Transitory'?
U.S. equity markets have been bouncing up and down on interest rate expectations, period
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The Dow Jones Industrial Average shed over 400 points on Thursday amid new fears that the Federal Reserve will raise interest rates at a faster clip than first thought because of a hotter-than-expected CPI reading.
Gerald Celente said the mainstream presstitutes in the media repeated the Fed’s BS line that inflation was “transitory” and not a problem, while The Trends Journal warned for months of the dangers.
Loretta Mester, the Cleveland Fed president, said at the FOMC meeting earlier this month she saw “a compelling economic case for a 50-basis-point increase, which would have brought the top of the target range to 5 percent.” (The Fed raised interest rates by 25 basis points, setting the range at 4.5 percent to 4.75 percent.)
Again, the nation is not near a 2 percent inflation rate. And rather than blame themselves and Washington for artificially inflating the economy with a zero interest rate policy and several trillion dollars of made-up money backed by nothing to fight the COVID War, the Fed Head Bankster Bandit Powell blames rising wages for the plantation workers of Slavelandia as being responsible for inflation.
“So if they raise them 50 basis points in March, fooooom goes the economy,” Celente said, indicating a major drop. “Crash-ola.”
Celente noted that gold prices are down and they should be “much higher.”
“When the economy crashes, gold’s going to go up,” Celente said. “When they lower interest rates, gold’s going to go up. So we’re bullish on gold.”
Last month equities bounced up higher on The Street’s expectations, as with ours, that the Fed Bankster Bandits would jack interest rates up only 25 basis points on 1 February because inflation was easing.
And the Fed Head, Jerome Powell, said after they raised interest rates that he believed the inflation rate would keep falling and signaled a dovish tone on future rate hikes which temporarily pushed equities higher.
Reversing earlier gains on Tuesday, U.S. stocks fell after the January consumer price index report showed that inflation grew at a 6.4 percent annual rate.
The Street was betting that it would rise by 6.2 percent… which is still above the imaginary 2 percent inflation rate that the Fed said is their target… which the previous Fed clown Ben Bernanke invented in 2012.
Yes, another arrogant Fed Head who was awarded the Nobel (Piece of Crap) Prize in Economics last October in celebration of his ignorant trend forecasts.
Bernanke was praised by Nobel Piece of Crap Prize winner Barack Obama who credited the former Fed Head for taking “bold action and out-of-the-box thinking.”
In a CNBC interview, July 29, 2005, Bernanke, the Harvard grad and former Princeton economics professor, was asked:
Q. “Tell me, what is the worst-case scenario if we in fact see [real estate] prices actually come down substantially across the country?”
A. “Well I guess I don’t buy your premise. It’s a pretty unlikely possibility; we have never had a decline in house prices on a nationwide basis.”
Speaking before Congress 18 months later (28 February 2007), as the subprime mortgage fiasco deepened, Bernanke said: “There is not much indication at this point that subprime mortgage issues have spread into the broader mortgage market which still seems to be healthy.”
Believe Bullshit?
Again, the nation is not near a 2 percent inflation rate. And rather than blame themselves and Washington for artificially inflating the economy with a zero interest rate policy and several trillion dollars of made-up money backed by nothing to fight the COVID War, the Fed Head Bankster Bandit Powell blames rising wages for the plantation workers of Slavelandia as being responsible for inflation.
Claiming that wages constitute a large share of the costs that increase the price of services is an inaccurate assessment. As we have reported, wages for workers in services that go into “supercore” prices were up just 4 percent in January.
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And when, using www.Shadowstats.com data, which provides accurate inflation numbers before they were rigged, real inflation is double the official number which means real wages are in steep decline compared to inflation.
As Gregory Mannarino forecasts in this edition of The Trends Journal, “Today we stand peering into a global financial and economic abyss the likes of which has never been seen before in human history. We are all stealthily being pushed ever closer to an inevitable economic and financial meltdown on a worldwide scale by those who control everything.” (See “Global Financial Impact” in this issue).
Before today’s inflation number came out, as evidenced by the future markets, The Street thought it would take more time for the hot inflation number to cool down. A week ago, the bet was that interest rates would peak at around 5 percent in May followed by two rate cuts at the end of this year.
But now they predict that interest rates will move above 5 percent, with expectations of one rate cut by the end of 2023.
Indeed, as the talk from the Feds changed, so too has the expectations for rate hikes. Last Wednesday a member of the Fed’s Governor Board Christopher Waller said, “Some believe that inflation will come down quite quickly this year. That would be a welcome outcome. But I’m not seeing signals of this quick decline in the economic data and I am prepared for a longer fight to get inflation down to our target.”
Yes, the fake made-up, 2 percent bullshit target.
In concert with his Bankster buddy Waller, John Williams, president of the New York Federal Reserve Bank, echoed: “We need to retain a sufficiently restrictive stance of policy. We’re going to need to maintain that for a few years to make sure we get inflation to 2 percent.”