Fed Holds Interest Rates, Announces ‘Drawdown’

[Anonymous No.3559795]

Federal Reserve Chairwoman Janet Yellen said her economists still don't quite understand what cause inflation to go down, and that they will be monitoring it over the next several weeks.

http://www.trunews.com/article/fed-holds-interest-rates-announces-drawdown

Citing strength in the U.S. job market, business investment growth, and “moderate but durable” economic expansion, the Federal Reserve—as expected—left interest rates unchanged at the end of its two-day policy meeting Wednesday. One more increase to range between 1.25 and 1.50 percent is likely before the end of the calendar year, which is about a quarter-point increase over the central bank’s current benchmark. Wall Street yawned.

The Fed also announced it will begin a “drawdown”—a move to decrease the number of assets remaining on its balance sheet—next month. It currently holds approximately $4.2 trillion in Treasury bonds and mortgage-backed securities dating back to the 2007-09 financial crisis. In October, it will begin selling off about $10 billion from its maturing securities each month. That, too, had been widely expected and produced no tangible reaction from the financial markets. Chairwoman Janet Yellen held a press conference after the end of the meeting, and stated that the recent decrease in inflation was a “mystery” to the Fed’s economists. She added:

>"What we need to figure out is whether the factors that have lowered inflation are likely to prove persistent [and if so], it would require an alteration of monetary policy."

The Fed still forecasts three interest rate increases in 2018, two in 2019, and one in 2020, and set the estimated long-term rate at a range between 2.75 and 3 percent. Inflation is expected to remain at or below 2 percent through 2019.

[Anonymous No.3559814]

Housing market is going down again

[Anonymous No.3559832]

They should just burn billions and billions of circulating money.

[Anonymous No.3559866]

>>3559795
I was trading TVIX when this happened. I was short, almost got fucked.

[Hershlag No.3559894]

>>3559814
house prices usually go up after hikes because everybody wants to lock a mortgage before rates too high, eventually then there will be sale on the market and people who have bought at the bottom of rates are the biggest losers

[Anonymous No.3559932]

>>3559894
Rates are going up .25 at a time, max. maybe not enough to put more pressure on asset prices.

[Anonymous No.3559942]

What does this shit mean? I only understand economics as it pertains to shit coin pump n dumps.

[Anonymous No.3560050]

>>3559942
It means that the people's whose only job is to understand and manage inflation, don't understand inflation - specifically the current influences. Up $50 bill a month can be dumped into the market.

Over the last 9 years, they've printed NEW money, an amount totaling 5 trillion, and shoved it into the equity markets. now they're talking it out. Think of the FED as the biggest whale that's ever existed, dumping on your favorite coin.

It also means that the stock market's bull run is going to be threatened.

[Anonymous No.3560896]

Look at this graph. Total fed assets have increased nearly five fold since 2008. Don't worry at all, dumping trillions of dollars of assets on the market to normalize holdings won't be a problem at all. This isn't only the US, the ECB is also stuffed to gills after all the quantitative easing.

[Anonymous No.3560904]

>>3559795
What coin is this?

[Anonymous No.3560919]

>>3560050
does this mean silver will go up
and cryptos

[Anonymous No.3560943]

>>3560919
Absolutely. I think cryptos and precious metals are going to rocket.

[Anonymous No.3560951]

>>3560904
the greatest ICO of all time

[Anonymous No.3561135]

>>3560943
Except rising rates typically correlate with dropping PM prices. Sometimes.