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Fed keeps US rate hike on hold

David_N

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Excellent news. No reason for a rate hike right now. The fed can't even reach its modest inflation target.
Fed keeps US rate hike on hold - BBC News
The Federal Reserve has decided not to raise interest rates, maintaining the ultra-low level they have been at since December 2015.
The US central bank opted to keep rates between 0.25% and 0.5%.
The Fed said "near-term risks to the economic outlook have diminished," but inflation remained below the bank's target.
It is still expected to raise rates twice this year. Investors expect the first increase to come in autumn.
In a statement, the Federal Open Market Committee (FOMC) said household spending was "growing strongly" and the unemployment rate had decreased for the last two months.
However, the Fed has held back from raising rates while inflation remains under its 2% target. The measurement used by the central bank lists current US inflation at 1.6% and it has hovered below the Fed's target since 2012.
 

joG

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Excellent news. No reason for a rate hike right now. The fed can't even reach its modest inflation target.
Fed keeps US rate hike on hold - BBC News

The amount of money in the market world wide is just too large to be able to say, what the situation is. Bonds and even traded funds are being bought by central banks that are also paying banks to invest in loans or charging to accept deposits, and the government deficits are large. In spite or maybe because of this the markets are pricing for zero growth or nearly that way into the future.

This evening the EU stress test for banks will be published. The test is of poor quality, but with Euros 360 billions in tainted loans on Italian bank balance sheets.... Nope. We should have prepared for a crash years ago, but today is not the time to start.
 

DA60

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The amount of money in the market world wide is just too large to be able to say, what the situation is. Bonds and even traded funds are being bought by central banks that are also paying banks to invest in loans or charging to accept deposits, and the government deficits are large. In spite or maybe because of this the markets are pricing for zero growth or nearly that way into the future.

This evening the EU stress test for banks will be published. The test is of poor quality, but with Euros 360 billions in tainted loans on Italian bank balance sheets.... Nope. We should have prepared for a crash years ago, but today is not the time to start.

Bank stress tests mean nothing to me...they are as fixed and useless as paper gold/silver, IMO.
 

joG

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Bank stress tests mean nothing to me...they are as fixed and useless as paper gold/silver, IMO.

You are quite right that this test seems to be doctored. I might sit down later and look at its features. Friends who have weren't happy.
Stress tests are a good tool per se. But they measure by the yardstick you choose and the yardsticks in the last stress tests were did not really measure some known risks.
 
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