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Tag: fed

The Easy Money Game Has Changed

  • Fed, Markets
  • Charlie Bilello

Why you should hope the Fed hikes again in 2016… Like Pavlov’s dog, market participants seem to salivate with any mention of quantitative easing (QE). For good reason, I suppose, as they have been conditioned to believe that quantitative easing means higher stock prices. Indeed, since QE1 was launched in December of 2008, all of […]

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Market to Fed: Plata o Plomo?

  • Fed, Markets
  • Charlie Bilello

In “Narcos,” the Netflix show chronicling the rise and fall of Pablo Escobar, there is a gripping scene in the first episode that sets the stage for the entire series. When stopped at a bridge crossing by Colombian authorities, Escobar gives them a choice: “Plata (Silver, take the bribe) o Plomo (Lead, take the bullets)?” […]

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Donald Trump made headlines this week in accusing Janet Yellen and the Fed of keeping interest rates low to help President Obama. Said Trump: “And in my opinion Janet Yellen is highly political and she’s not raising rates for a very specific reason: because Obama told her not to because he wants to be out […]

  • Posted in Economy, Fed
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When Lower for Longer is Not Enough

For years now, U.S. equity markets have rejoiced each and every time expectations for the first Federal Reserve rate hike have been pushed back. Mr. Zero interest rate policy has been the best friend of the stock market bar none. “Lower for longer” has been so ingrained into our psyche that anytime there is a […]

Mr. Zero Interest Rate Policy

“If the Fed doesn’t raise rates, that’s bad for the long bond because the bond wants it to tighten. And it’s positive for stocks because stocks love their friend, Mr. Zero interest rate policy.” – Jeff Gundlach on CBNC Stocks indeed love their little friend, Mr. Zero interest rate policy. He has been the one constant […]