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Yesterday- Bloomberg Said Lower Us Rates

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"Bernanke May Keep Pushing Interest Rates Higher, Economists Say

March 21 (Bloomberg) -- The Federal Reserve will keep raising interest rates, brushing aside arguments that low long- term bond yields signal a slowing economy, analysts concluded after listening to Fed Chairman Ben S. Bernanke. "



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Next tuesday is a given. Yesterday those that need lower rates were "promoting" lower rates ahead of Bernanke's speech , you know the type of thing, "If we talk enough about it,perhaps the FED chief will come to the belief that the markets have priced it in and nobody wants to wrong foot the markets". Basically the same game that we read in 99% of the UK press re lower UK rates.

Anyway, Bernanke blew that attempt out the water , I'm constantly amazed how over leveraged journos and so called "economists" think they can play the Jedi mind trick on some seriously intelligent people.


Edited by delite1

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The Fed are not done yet. Al and Bernanke have both said that house prices may suffer for the overall good of the economy which must head off inflation. Bernanke repeated this again last night:


Tuesday March 21, 1:26 am ET

By Pedro Nicolaci da Costa

NEW YORK (Reuters) - Federal Reserve Chairman Ben Bernanke, in his first public foray on Wall Street, offered conflicting signals on interest rates but said the economy should keep growing at a brisk pace
even if the housing market slows
The new Fed chief said late on Monday it was difficult to say why long-term rates were at such low levels and he outlined competing scenarios on what that meant for short-term rates.

By "slowing" he and Al refer to the overall US market not the "froth" markets where HPI has equalled the madness of the UK. The Fed are therefore not going to adjust IR to suit the housing market because the majority of people in the US have sustainable house prices. The froth markets on the Coasts, the UK, IR, Oz etc. will suffer the pain.

Edited by Realistbear

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watch USD/JPY on the FX markets. Earlier in the week, rumour that the fed tightening cycle had completed sent the USD sharply down, it briefly broke 115.5 early yesterday (medium term support level) before (IMHO) the contents of bernakes speech at the economic club yesterday evening started to be leaked out to bid up the market (heralding a strong rebound). Most analysis of its contents is very bullish wrt raising IRs and the fed are now clearly aware that at current levels stopping the tightening cycle will lead to a weaker dollar - not a good thing when you look at their balance of trade. Quite how the GBP is continuing to hold at its current level I have no idea (well maybe I do, cheap money flooding in from abroad pushing the ftse above 6000 anyone?).

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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