The president-elect's criticism of the Federal Reserve could put an end to soaring U.S. equities
-inflation-interest-rates) is that Donald Trump's criticism of the Federal Reserve will kill the "Trump rally."
It's not a question of "if," but "when" and from "how high." At a minimum, the foundation of the death of the Trump rally will be laid this Wednesday. The Dow Jones Industrial Average has jumped 8% from Nov. 8 through Dec. 9.
What is so special about this coming Wednesday? On that day, the Fed will announce its interest-rate decision. The consensus is that the central bank will raise interest rates by 25 basis points (http://www.marketwatch.com/story/fed-to-...2016-12-09) and issue a dovish policy statement, meaning policy makers aren't ready to take aggressive action to stem inflation. After Brexit and the Trump election, investors hopefully have learned to take the consensus with a grain of salt.
-inflation-interest-rates) is that Donald Trump's criticism of the Federal Reserve will kill the "Trump rally."
It's not a question of "if," but "when" and from "how high." At a minimum, the foundation of the death of the Trump rally will be laid this Wednesday. The Dow Jones Industrial Average has jumped 8% from Nov. 8 through Dec. 9.
What is so special about this coming Wednesday? On that day, the Fed will announce its interest-rate decision. The consensus is that the central bank will raise interest rates by 25 basis points (http://www.marketwatch.com/story/fed-to-...2016-12-09) and issue a dovish policy statement, meaning policy makers aren't ready to take aggressive action to stem inflation. After Brexit and the Trump election, investors hopefully have learned to take the consensus with a grain of salt.