Coronavirus federal reserve Jerome Powell Market News 

Alarming Message in Rare Fed Chair Interview

Fed Chair Jerome Powell did a rare interview on “Today.” While his appearance was alarming in itself, the Federal Reserve Chair’s conflicting messages sent a worrisome signal about the economy. If there’s “nothing fundamentally wrong with our economy,” why is the Fed pumping $4 trillion into it in one fell swoop? Fed Chair Jerome Powell sat down for an extremely rare interview on the “Today” show Thursday. NBC’s “Today” headlined the story with a quote from the Fed Chair: There’s nothing fundamentally wrong with our economy But if that’s true,…

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federal reserve Market News Op-ed United States 

Stock Market Gains Crushed By a $4 Trillion Debt Disaster

The government’s stimulus isn’t enough to keep the rising tide of debt at bay. The corporate debt bubble is threatening to pop despite stimulus promises. The real estate market looks primed for a meltdown as mortgage payments are delayed. The U.S. government’s unprecedented stimulus package was applauded by investors on Tuesday and the stock market soared in response. That rally will be short-lived for one simple reason: it’s not enough. Stock Market Gains Hid Underlying Debt Problems While the Fed and the U.S. government’s actions were necessary and commendable, American…

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Dow Jones federal reserve Market News 

Dow Futures Crash 1,041 Points as Fed Capitulates To Trump

Dow futures dropped 1,041 points despite a surprise announcement from Federal Reserve Chair Jerome Powell. The Fed made another emergency rate cut on Sunday, this time all the way down to 0%. Donald Trump cheered this effort, but Dow bulls appear unconvinced. In an incredible move reminiscent of the financial crisis in 2008, the Federal Reserve has slashed interest rates again, this time to the 0%-0.25% range, and announced $700 billion of asset purchases. Dow Plunges, Dollar Weakens After Fed Emergency Cut The Fed communicated its shocking stimulus move in…

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Coronavirus Dow Jones federal reserve Market News 

This Is Why the Dow Jones’ Fed-Fueled Surge Suddenly Fizzled Out

The Dow Jones Industrial Average (DJIA) surged after the Federal Reserve executed an emergency interest rate cut. But after suddenly pivoting higher, the stock market quickly erased its session gains. Here’s what’s driving the stock market’s volatile day. Despite securing a historic rally yesterday, the Dow Jones Industrial Average (DJIA) lurched back into decline after the G-7 statement failed to deliver the stock market the central bank juice it craved. That all changed 30 minutes after the opening bell. A surprise Federal Reserve policy action stunned investors, and the U.S.…

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Coronavirus federal reserve Market News Op-ed 

The Fed Can’t Stop the Coronavirus-Fueled U.S. Housing Market Crash

Coronavirus is leaving a dent in the Chinese economy, as evidenced by the latest indicators on home sales, inflation and manufacturing productivity. The rapidly spreading virus threatens to disrupt trade and economic growth in key regions, leaving markets exposed to devastating pullbacks like we saw last week. The economic disruption caused by coronavirus is already impacting real estate in key Asian locals. America’s housing market could be the next domino to fall. The Wuhan coronavirus is wreaking havoc on China’s economy. Surging inflation, declining productivity and plunging home sales are…

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Coronavirus federal reserve gold Market News 

Gold Price Poised to Knock Out Another 7-Year High: 3 Reasons Why

The price of gold rallied 0.9% to $1,590.70/oz. on Thursday, the highest in three weeks. A combination of technical and fundamental forces has bullion hitting new seven-year highs this quarter. Inflows into gold exchange-traded funds (ETFs) have already hit seven-year peaks. The price of gold rallied sharply on Thursday, as coronavirus fears overshadowed economic data, corporate earnings and even the Fed. April gold futures jumped $14.70, or 0.9%, to $1,590.70 a troy ounce on the Comex division of the New York Mercantile Exchange. The yellow metal remains about $29 shy…

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federal reserve Market News Opinion US Stock Market 

CEO Pessimism About the Economy Is Getting Worse; Will This Affect U.S. Stocks?

CEO pessimism is at the highest level since 2012. The stock market will likely keep rising as CEOs continue authorizing stock repurchases. The Federal Reserve will keep pumping liquidity and keep the longest bull market alive. Business consulting firm PricewaterhouseCoopers (PWC) recently released its 23rd Annual Global CEO Survey. The poll asks chief executives around the world about their global economic outlook for the next 12 months. Last year, nearly 30% responded that global economic growth would decline in the next 12 months. A year later, these CEOs were right…

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bernie sanders Donald Trump federal reserve Op-ed Politics 

How the Federal Reserve Could Hand the 2020 Election to Bernie Sanders

The Federal Reserve is reportedly considering loaning money to hedge funds for them to make risky bets. Fed policies have greatly benefited the rich and led to massive U.S. wealth inequality. That benefits Bernie Sanders as he strives to defeat Donald Trump in 2020. Bernie Sanders has been rising fast as a 2020 presidential contender, and recent polls suggest that he’s doubled his lead over Donald Trump and would clobber him in a head-to-head election. Source: Twitter It’s increasingly clear that Sanders has a viable path to the presidency, and…

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federal reserve gold Market News 

Gold Price Poised for 16% Yearly Gain as Real Interest Rates Plunge

Despite a quarter-long correction, gold’s price is tracking yearly gains of around 16%. The primary driver for gold’s bull market continues to be real interest rates. 2019’s major macro trends are set to continue next year. The price of gold has languished for the better part of four months, as technical resistance and the return of risk appetite undercut demand for the traditional haven asset. But if 2020 is anything like this past year, bullion’s breakout performance is set to continue. As I’ve written before, the key to gold’s continued…

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federal reserve Housing Market United States 

This Key Metric Rules Out A Repeat of 2007 Housing Crash

Analysts are looking for cracks in the housing market data as the longest economic recovery in U.S. history continues. But most of the blips in the data are too short term, and not correlated meaningfully with other economic indicators. Two key data relationships from the demand and supply side show a very healthy recovery that’s likely to last. Since the Great Recession we’ve seen the longest-running economic recovery in U.S. history. It has left many nervously anticipating a stock market bust or housing crash. From 1854 to 2009, there were…

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