Can The Fed Prop Up Markets Indefinitely?

From CNBC:

Central banks have been “great” at delivering financial outcomes, if not economic results, in recent years, according to El-Erian. But he now believes policymakers will soon find it difficult to provide support even on the financial front. Investors should prepare for the end of an era in which growth has been low but stable and central banks have repressed financial volatility when it rises too much, he warned.

The No Rate Hike Scenario

Is there a scenario that includes no more rate hikes in this cycle from the Fed? Sure, if the economy remains weak and eventually rolls over into a recession, the Fed would most likely remain on hold. However, that scenario is not favorable for the stock market.

This article is brought to you courtesy of Chris Ciovacco from Ciovacco Capital.

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