The Federal Reserve’s Open Market Committee isn’t going to admit it made a mistake in December by raising interest rates. But the statement it released yesterday – announcing no change to the Fed Funds rate – certainly had an air of contrition. The statement used the word ‘gradual’ twice.
Like a chastened lover trying to make up after an argument, it tried to assure investors that, even though it raised interest rates last year, it will only do again gradually. And that rates are going to stay low for a long time. I promise baby. Really.
The market doesn’t believe you, Fed
The S&P 500 fell by one per cent. But it was the tech stocks and the Nasdaq that felt especially scorned. The Nasdaq fell 2.18%. Facebook and Amazon fell by about 3% each.
What is the ‘momentum effect’? What is the ‘momentum crash’? When does it happen and what should you do?
These are all subjects Charlie Morris addressed in his first effort as Investment Director of the Fleet Street Letter. To be honest, Charlie’s been raring to go for months. He’s sending out his first weekly update tomorrow. I won’t give it away until subscribers read it. But Charlie reckons some of the signals for an oil price turnaround are… signalling. His first update tells new readers what to do.
Category: Central Banks