Custom Search

Wednesday, February 20, 2008

Fed Losing: Rates Rise Again

I recently mentioned rising rates in Fed Cuts: Market Raises Rates

Looks like Mr. Market is giving the Fed a run for its money...

In the FOMC Minutes, the Fed said that participants agreed inflation data since the December meeting had been "disappointing", but that slow growth should relieve some of the pressures. Unbelievably, in the same breathe the Fed raised its core inflation forecast for 2008 to 2.0% -2.2% from 1.7%- 1.9%. The Fed also lowered its 2008 GDP forecast to 1.3% - 2.0% from 1.8% - 2.5% and raised its unemployment rate expectation to 5.2%-5.3% from 4.8%-4.9%.

Somehow this got the Bulltards out in full force and EVERYTHING, excluding fixed income, went bid. Equities. Commodities. Across the board.

A break above 1370 on the S&P would result in significant reduction of my Bearish positions, as this raises the possibility of a bounce to the 1390 area and beyond.

Related Headlines:
Fed Saw Need for Low Rates `For a Time,' Minutes Say (Update2)
Oil Rises Above $101 to Record on Increased Demand, Inflation
U.S. Economy: Housing Slump Fails to Quell Inflation (Update2)

5 comments:

v said...

Lol. Yeah, the bulltards had helicopters in their eyes. Some semblance of reality hit today, though I find it a little annoying that the SP500 closes at ~1340 (in reference to a previous post of yours). It's clearly going lower and finally (macro) reality is slowly creeping in.

As always, simply stellar posts FN. Mucho thanks!

Ben Bittrolff said...

V, macro reality really is SLOWLY creeping in. 1340 is nothing yet. 1250 just STARTS the real decline. WHEN people finally do fully catch on, watch the SPECTACULAR crash in commodities. (I'm working on a more in depth post on the topic for the weekend. So I'll explain then.)

eda said...

101煙火,煙火批發,煙火工廠,製造浪漫煙火小舖,煙火小舖,衣蝶,衣蝶,情趣用品,情趣商品,情趣,情趣,衣蝶情趣精品百貨,衣蝶情趣精品百貨,煙火批發,情趣禮品,成人用品,情趣內衣,情趣精品,情趣商品,情趣用品,情趣,情趣,真愛密碼情趣用品,真愛密碼,真愛密碼,真愛密碼情趣用品,貓裝,自慰器,性感內褲,角色扮演,丁字褲,,跳蛋,AV,丁字褲,煙火,情趣用品,情趣用品

Sneakers hobbies said...

nice post!!
We do kinds of casual clothing wholesale online, welcome to visit!!
winter clothing
winter jackets
winter clothes
ski jackets
north face sale
discount north face jackets
north face coats
men's down jackets
cotton polo shirts
polo shirts
cheap polo shirts
ralph lauren polo shirts
discount polo shirts
polo shirts wholesale
columbia jackets
the north face jackets
columbia sportswear jackets

jiang said...

A good compropmse mght be pandora online something your chikldren want, wich cheap pandora will also be usefdul for them & you. Last year, scooter for one of the pandora charm boys was a big hit as he cuild whistle down the street at him, then fold it & put it in the bag when pandora charms australia he juumped on the bus or want to go inside the shopping center ... Not bad for investment in accordance with $ 100.00. It saved me from going to take him with his bicycle many timse troughout the year. This Christmas does not maztter