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Why US Interest Rates are a Nothing Burger

Interest-Rates / US Interest Rates May 24, 2024 - 09:55 PM GMT

By: Nadeem_Walayat

Interest-Rates

All eyes today will be on the Fed and it's interest rate decision, weren't we supposed be having a cut in March? That's gone! Kicked down the road. So no rate cut today or at the next meeting nor likely in June. And each time the Fed holds the MSM clowns cry stocks must fall due to failure for rate cuts to materialise all whilst the bull market continues to relentlessly grind higher.

Everybody is obsessed with when will the rates be cut without understanding why rates should be cut!


Why should rates be cut?

Because CPI is falling? Or was falling.... Well that CPI is a LIE! CP LIE! A made up fake inflation index.

For rates to actually fall there needs to be a reason other than it will make life easier for home owners and speculators.

One major reason to drop rates would be if the Dollar was going up, is the Dollar going up?

Nope the US Dollar has been stuck in a trading range for the duration of this stocks bull market. The stock market likes a stable dollar. not a strong or weak dollar, a stable dollar. So why cut interest rates when the Dollar is stable and the markets like it that way. There is no reason in terms of dollar trend to cut interest rates,

Whilst the Fed barks about how inflation is now mostly under control by waving fake CPI lie in everyone's face. However INFLATION = ASSET PRICE INFLATION - That's stocks and housing which given their trends suggest that Interest rates should be HIGHER NOT LOWER!

What about to Create Jobs?

Does the US unemployment graph look like it warrants lower interest rates to create more jobs?

I could go on and on, but apart from clowns on the cartoon network banging their fists demanding lower rates NOW, there isn't any significant reason to lower rates. I mean if stocks are rocketing higher despite higher for longer then does that not tell you the MSM rates cuts are coming mantra is just another one of those nothing burgers such as the fact that a recession has always been imminent since early 2022.

So I think focusing on interest rates is a red herring as market price action is telling us that interest rates are TOO LOW! The clowns say interest rates need to be cut so that markets can become risk on once more, then what the hell do you call what Bitcoin has been doing if that is not a sign of MARKETS being RISK ON!

Where markets are concerned nothing is certain but the fact that the consensus is waiting for rate cuts to get the party started illustrates once more that the consensus is WRONG! The party has been underway for over a year with no end in sight as all those sat on the side lines desperately seek a big price dump so they can buy and will increasingly admit defeat and join the party while they can!

It is definitely impossible for ordinary investors to make money because the MSM clown journalists are always pointing them towards looking in the WRONG direction because they don't have a clue what to actually look at and thus everyone is staring at nothing burgers all whilst the markets rip higher! The next nothing burger will be another banking crisis!

UNDERSTAND INTEREST RATES ARE TOO LOW! IT'S MORE LIKELY AT SOME POINT THE FED WILL BE FORCED TO RAISE RATES NOT CUT RATES GIVEN ASSET PRICE INFLATION.

This article is an excerpt of my recent extensive analysis - Stock Market, Interest Rates, Crypto's and the Inflation Red Pill which was first made available to patrons who support my work. So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $7 per month, lock it in now at $7 before next rises to $10 per month for new sign-ups. https://www.patreon.com/Nadeem_Walayat.

Contents

Stock Market Trend Forecast
Swings Analysis
AI Stocks Portfolio
TESLA
Why US Interest Rates are a Nothing Burger
Stocks Bull Market Smoking Gun
Time to take the RED Pill
Crypto Correction
Bitcoin Trend Forecast
Bull Market Tops
Crypto's Exit Strategy
Coinbase MSTR 2.0
UK Tax Year End To do list
So much for the Rise of China Narrative

Latest analysis - AI Will Turn Everyone Into Gamblers! The Greatest Wealth Transfer In History is Coming...

CONTENTS
Stock Market Inverted Seasonal Trend
China NEW STOCKS BULL MARKET!
Hyper Sensitive Markets as AI Disrupts Everything, Including Itself!
Learn How to Accumulate and Distribute
Beat FOMO and FUD with EGF Direction of Travel
MEDIFAST - Disrupted by Weight Loss Drugs
Counting Down to Nvidia Earnings
AI Stocks Portfolio Spreadsheet
RECESSION 2026?
Stocks Portfolio For A Recession of Sorts
AI Will Make Everyone Poor!
SPECULATING!
The Future of Mankind - You are Being Sold a Lie!
Universal Basic Slave Income is Coming....
Fake Full Employment
Billionaire Nazis are in Charge!
How to Get Rich University
They Want Your House!
The Greatest Wealth Transfer IN History
UK House Prices
Bitcoin Preparing for Next Leg Higher
BTC Where Next?
Bull Market Tops

And gain access to my exclusive to patron's only content such as the How to Really Get Rich series.

Change the Way You THINK! How to Really Get RICH Guide 2023

Learn to Use the FORCE! How to Really Get Rich Part 2 of 3

The Investing Assets Spectrum - How to Really Get RICH

Here's what you get access to for just $7 per month -

※ Patrons Get FIRST access to all of my In-depth analysis and high probability Trend Forecasts, usually 2 full months before the rest of the world. Notified by Patreon by email as well as posted on this page and I will also send a short message in case the extensive email does not make it to your inbox.

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My objective is to provide on average 2 pieces of in-depth analysis per month and regular interim pieces of analysis as market briefs. So over a 12 month period expect to receive at least 24 pieces of in-depth analysis. Though my focus is on providing quality over quantity as you can see from the extent and depth of my analysis which I deem necessary so as to arrive at that which is the most probable market outcome.

So for immediate first access to ALL of my analysis and trend forecasts then do consider becoming a Patron by supporting my work for just $7 per month, lock it in now at $7 before next rises to $10 per month for new sign-ups. https://www.patreon.com/Nadeem_Walayat.

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Your analyst.

By Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2023 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Housing Markets Forecast 2014-2018The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

Nadeem Walayat Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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