Expectations have now shifted to a July rate cut… Will it happen and will it help?
Ed Moya, Senior Market Analysts at OANDA joins me to share his thoughts on the ongoing trade wars as well as Fed rate cut expectations. The G20 is up next for any possible developments between the US and China but anything in terms of tweets could happen before then. As the the Fed, expectations have shifted to a July cut. The question is, will the cut actually help?
Click here to visit the OANDA website and follow along with what Ed is writing everyday.
I intended to add the following after my earlier comment but my internet access went down.
Of course extra expansion in the economy, even with a fixed labor force, can be made by increased productivity. Since increased productivity often requires capital expenditure, it is possible this will be helped by lower interest rates.
DUST stink bid in at 16.46……the gld has a 3 gap play up on shrinking volumes….below the close of the bar yesterday at 125.15 is confirmation…they can retrace quickly
So was that the end of gold’s rally? Doc was calling for $1220. Same ole same ole–
It could pull back or pause for a day or two but nothing about the move so far suggests that it is over.
This is one bullish picture:
https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=9&mn=3&dy=6&id=p49209279431&a=541770308
As I have been stating since last year, the Fed will follow in the shadow of Japan monetary policy. It will not raise interest rates again, PERIOD. (Until after a monetary collapse.)
BECAUSE IT CANNOT.
The U.S. economy is in better shape than any other major economy, and this will continue.
However, eventually a liquidity shortage will cause the US to monetize interest payments on the debt….this will not happen soon though.
The U.S. economy will not be able to expand indefinately because there is a LIMIT TO AVAILABLE LABOR.
Employment CANNOT INCREASE IF THERE IS NO ONE LEFT TO HIRE.
I don’t want to criyicize Mr. Moya because he is spouting the majority opinions, but get real….there are limits…..to employment, to affordability of interest payments, of debt, etc.