27/10/17

Weekend Reading: Markets Love Central Banks - No Matter What They Do



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Weekend Reading: Markets Love Central Banks - No Matter What They Do
// Zero Hedge

Authored by Lance Roberts via RealInvestmentAdvice.com,

I discussed yesterday, the apparent "myth" of the Fed's proposed "balance sheet reduction" program as the most recent analysis shows a $13.5 billion "reinvestment" into their balance sheet which has helped fuel the recent market advance.

But therein lies the potential "fatal flaw" of the "bullish logic." 

At the September FOMC meeting, the Federal Reserve announced their latest decision which contained two primary components:

  1. No rate hike currently, although, further rate hikes are likely in the future, and;
  2. The beginning of the process to cease reinvestment of the Fed's balance sheet. 

That announcement was notable for two reasons:

  1. The Fed did NOT hike rates because the .....
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