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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding

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To: Maurice Winn who wrote (1188)10/9/2018 7:20:57 AM
From: robert b furman  Read Replies (1) of 13800
 
Hi Mqurice,

The Fed will hold on its 1/4 point increases in the future.

So far the Fed has had a 1/4 point rate increase in June and now in September.

Prior to the june rate increase the 10 year reached 3.13 ish. Since then the Fed has raised rates by 1/2 point.

Today the 10 year trades at 3.25 ( a seven year high). If the Fed had such control on rates it should be yielding 3.63 (3.13 plus .5 = 3.63). The fed follows rates not leads and its about to catch up to them.

I suspect that the "imminent rate increase" scheduled for December will be deferred.

Keep in mind that the Fed also is retiring MBS's and Treasuries in a Quantatative Tightening process.

I suspect to keep the Dollar from going any higher, we'll see rate increases be deferred and QT continue a bit more under the horizon of market worries.

Bob
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