All of the bad debt that helped trigger the financial crisis was never written off, and there are now convincing signs that deflation, and not the Fed’s sought-after inflation – could break out soon.
How to Profit from the Fed's Worst Mistake Ever
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How the Fed Could Spark Even More Profits from This "Cashless Wonder"
Most media tuned out once it became clear the U.S. Federal Reserve wouldn't act to raise interest rates in September.
But in doing so, the media failed to report on some illuminating predictions from the Federal Open Market Committee's "dot plot" on where they think the Fed funds rate will be in the near, medium, and long term.
What the media didn't tell you was that an FOMC member actually predicted a negative Fed funds rate - for the first time ever in Fed history.
How We'll Capitalize on Fed Cowardice
Markets delivered a resounding Bronx cheer to the Federal Reserve on Friday after that confederacy of dunces failed to raise interest rates at its highly anticipated, two-day September meeting.
The Dow Jones Industrial Average plunged by 290 points (1.74%), while the S&P 500 followed by 32 points (1.62%), and the Nasdaq Composite Index dropped by 67 points (1.32%).
On the week, the Dow lost only 49 points, or 0.3%, to close at 16,384.79, while the S&P 500 shed only 3 points, or 0.2%, to end at 1,958.03. Both indices remain down on the year.
The Fed Just Brought a "Super Crash" Closer
On Thursday the Fed blamed China for its policy paralysis.
This effectively expanded the Fed's dual mandate from trying to achieve full employment and price stability to trying to maintain global financial stability, but only succeeded in introducing more uncertainty to the situation.
And it gets worse. I want to show you why... and what I expect to happen now.
Will the Next Federal Reserve Meeting Deliver an Interest Rate Hike?
After weeks of anticipation, Thursday's FOMC meeting ended without an interest rate increase. That left investors speculating if a hike will come at the next Federal Reserve meeting.
It's entirely possible, as the U.S. central bank left the door open for a rate increase following its next two-day meeting on Oct. 27 and Oct. 28. At yesterday's press conference, Fed Chairwoman Janet Yellen said "October remains a possibility," in regards to a rate hike.
Here's what investors need to watch ahead of the next Federal Reserve meeting...
What the Fed Meeting Today Means for Stocks
We're just hours away from Janet Yellen's 2:00 p.m. press conference, and investors are still in the dark on whether interest rates will rise following the Fed meeting today (Thursday).
U.S. markets were flat this morning ahead of the Fed meeting, with the Dow Jones Industrial Average down six points in early trading.
Investors are waiting anxiously, because the decision will have a huge impact on stocks...
Investors' Guide to Fed Interest Rates and the Upcoming Hike
Fed interest rates are about to increase for the first time in nine years. U.S. Federal Reserve Chairwoman Janet Yellen had hinted for months that the central bank finally was ready to raise interest rates above zero for the first time since late 2008.
Markets will react as new rates are decided, Money Morning Capital Wave Strategist Shah Gilani explained on Aug. 7. "Investors could panic. Because we're so close to all-time highs, any dip could turn into a sell-off as investors rush to book their paper profits."
Watch the following video for Gilani's prediction on the timing of a rate hike, plus get his profit-taking strategy than any investor can use to cash in when Fed interest rates climb...
Will Janet Yellen Raise Interest Rates?
The U.S. Federal Reserve began its two-day September meeting this morning (Wednesday), and investors are wondering whether Fed Chairwoman Janet Yellen will decide to raise interest rates now.
And even though we're just a day away from Janet Yellen's press conference - which will take place Thursday at 2:00 p.m. - we're still in the dark about whether an interest rate hike is coming.
Here's what investors need to know now...
Will an Interest Rate Increase Happen at This Week's FOMC Meeting?
An interest rate increase is the biggest topic for Fed officials during this week's two-day FOMC meeting on Wednesday and Thursday.
While many economists believe the Federal Reserve should hold off on raising interest rates this month, Money Morning Chief Investment Strategist Keith Fitz-Gerald says investors shouldn't assume the Fed will make the smartest decision.
Keith Fitz-Gerald: "Federal Reserve Policy Is Past Its Prime, Ignores Middle Class"
Money Morning Chief Investment Strategist Keith Fitz-Gerald talked U.S. Federal Reserve policy with "Varney & Co." host Stuart Varney on FOX Business Monday morning.
The Week's Big Story Isn't in Wall Street's Losses
After an "impressive" May jobs report, the Dow Jones Industrial Average (INDEXDJX:.DJI) ended its third consecutive week on a down-note, losing 56.12 points (-0.31%) on Friday while the S&P 500 (INDEXSP:.INX) also fell for the third consecutive week, dropping 3.01 points (0.14%) on the day.
On the week, the Dow lost 161 points or 0.9% to 17,849.46 while the S&P 500 fell 15 points or 0.7% to 2092.83. For the year, the Dow has gained a mere 26 points, far less than 1%, while the S&P 500 has climbed by 33 points or only 1.6%.
The NASDAQ Composite (INDEXNASDAQ:.IXIC) has done much better, ending the week basically flat at 5068.46; it is now up about 7% on the year as social media, biotech and tech stocks continue to rise.
Stay Away from This Irrational Indulgence
When I see the market rally mindlessly - as it did on Friday, after the jobs report pushed the jobless rate down to 5.4%- I ask myself a set of questions like the following.
Do investors really think it's going to matter if the Fed raises interest rates by a quarter of a point in September instead of June? Do they really think it's normal that €3 trillion of European debt is yielding less than zero? The Swiss National Bank (Switzerland's Federal Reserve) owns $100 billion of stocks...Is that considered normal?
Here's When Apple Hits $200
One of Apple's core strengths is its ability to develop and market products that consumers don't even realize they need yet.
The Truth Behind the Dangerous "Helicopter Money" Delusion
Seeking out major trends and power shifts in the global economy is a part of my work that I enjoy most.
It's a lot of work, and needless to say, it involves constant research.
That's why a piece I recently read in Foreign Affairs absolutely shocked me...
The piece is a bit revolutionary, as its authors speak to a drastically different way of stimulating an ailing economy than the path we're on today.
The Real Reason the Federal Reserve Is Afraid to Raise Interest Rates
When the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve meets next week (Sept. 16-17) to consider when it should raise interest rates, it will have a huge disincentive to do so.
And we're not talking about what you'll hear in the mainstream media about whether the unemployment rate is finally low enough, or whether U.S. economic growth is finally strong enough to warrant tightening monetary policy.
No, what the Federal Reserve fears most is a problem of its own creation...