Is it politics, the economy, global currencies, that we’re discussing when we note a race to the bottom? Or is it perhaps all of the above? Yes! It is all of the above, unfortunately. The Fed decided to keep rates steady and expects to do so throughout 2020, but we’re not holding our breath. It’s an election year and any market pullback of significance, and to this Fed, 5% might be considered significant, causing the Fed to intervene and cut rates again. And don’t forget about non-QE, QE, the o/n repo market, and the term repo market. Today’s decision, caused the dollar to weaken against a basket of currencies. How will these other countries respond? Most likely with further monetary easing of their own. Thus a race to the bottom.
An impeachment vote in the affirmative is all, but guaranteed and this, despite your opinions of the President, is a sad nation in the history of our Republic. If impeached, the next step will be for a trial to convene in the US Senate with US Senators the jury and the Chief Justice of the Supreme Court presiding. The rules of the trial will be made known soon after impeachment. This all of course assumes that President Donald J Trump is impeached.
This weekend a decision must be rendered by the President as to whether or not there will be an increase in tariffs on Chinese goods. Postpone, cancel, or implement? – that is the question. Regardless of the decision, expect market volatility in one direction or the other. Stay diversified, stay vigilant, and stay with The Kapital News. #Recession #Economy #EndTheFed #Impeachment #Politics #Truth #Justice #Peace #Congress #Republic