1.5% milestone for the Federal Reserve

Sampson I. Onwuka




Market expectations are not the same this Friday and the next but the jolt in the arm is the federal reserve injection of a quarter percentage, leading to 1.5% funds rate, a pedestal that may have reached a milestone visible for hints of uncertainty in U.S equity market. 1.5% is also a significant milestone for Janet Yellen who is exiting the Federal Reserve chairmanship for Jerome Powell, and for the U.S markets following a long period of contraction by the Federal Reserve beginning with Alan Greenspan. The testimony is well stated that the country is transformed given the damage to the economic fabric by shadow banking but some of the positions are articles of history, and has a way of accommodating visible issues of tax reforms in U.S markets.


There are gaps in the corporate earning this year that needs not to be mentioned that the poor penetration of private investors in the stock market from high frisson effect during periods of expansion and government spending leading to the landing curve, and then transformed by the borrowing into an economy of experiences is a statement of integrity that adjustments to the markets is very slow. This year in United States, there is wage increase of only 2.5% and an official position on low inflation - which does not mean that these numbers accommodate cost of living in many inner City Americans, and which does not also means that accommodate any mean to minimum wage bracket.


There is something unsettling since June through September of this year, perhaps since 2015, it is an expectations that Yellen may not remain in office, an account of President Trump style of politicking and it all fizzled out differently 2017 when certain announcement where made. Given the performance of U.S market since 2015, there is a point that give head to the strange horse races between the markets that raise questions of rates leading to 2016, leading to 2017 and the what is the bond's position to Bitcoin. With major economies in the world experiencing a downtown including a small recession in China, it seems over the years, at least in the years after Greenspan, that housing which has not taken a central position in the labor ridden dovish chairmanship, seem to be the only useful investment choice for many experts of renown. The reverting to low cost housing is not reported, what we have high cost of living along high rental cost, there is a question of equity.


The expectations that are also met this year, it gives room for the origination of loans for private venture and questions of interest rate which the stock market more than account for, especially when it lends its size to the rest of world. U.S stocks may experience some low yields since the last 10 years but there are gaps in the yields this December that might shift the markets differently. There are issues of equity and questions of official position of many macro event businesses. There are other questions of the U.S ability to cushion what may seem like a possible rumble at the refiner product, perhaps the price of crude oil may create the necessary funk for steady bond till 2019 - leads to the argument that the offering of bonds by all major centrals banks suggest that these are setting the case they are privately owned and long on banks stocks for their own care.


The real concern if there is one, is how well the world markets tend to repeat their tallies for interest rate and whether or not the effects will boom around to the United States - if and when the rest of the world pursue similar lines of policy, for instance scaling to a higher rate with Fed's hike. Until this is the case, there are signs that the many holiday clearance and 8% spike will not only be met this year with all the holidays sale but will be exceeded in the last week of December leading to the transformation of the market that begins from next year. In small regard to the recent of China during the June close of currency markets, the People's Republic has not spoken.