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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (51017)	2/4/2022 5:33:07 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 97457

Yes. That is what I was referring to. Powell will do what he has been doing. He will talk the market into doing his bidding without actually doing much. He can raise the fed funds rate by a maximum of 1.5%, so he will have to stretch that out. He will also tolerate much bigger market drops than his predecessors did (again because he doesn't have much room to play with the interest rates on either side). My guess is that 25% or even 30% is ok, so long as it is orderly. Ultimately he will have to accept inflation over raising interest rates too high. But these points will be significant next year. For this year he will raise the rates in March, then in May or June, and then 2 more some time over the following 9 months depending on the situation. There is a way to make this mess more manageable. If monetary and fiscal policies were coordinated, then the Fed could raise the rates above 3%, provided the government would spend enough money in the right places to make up for the increase. But given that the US is in the midst of cold civil war, we are more likely to become independently wealthy off our trading than the two sides of the isle getting along with each other.