What’s up with the stock market?
New highs again today. It’s almost as if my Illuminati conspiracy theories are true, that secret groups are pumping up stocks and everything else going into the presidential election.
Over the last year, Federal Reserve officials have dramatically curtailed ambitions for interest-rate increases, even as inflation has risen and unemployment has declined.
So what gives?
Perhaps just as important as the increased attention being paid to headwinds from abroad are the changing attitudes of Fed policy makers toward inflation. That suggests more confidence they can afford to keep borrowing costs lower for longer, because there is less concern that price pressures will get out of hand.
Maybe the real reason they are keeping interest rates low despite it being almost 8 years since the asset crash and banking crisis of 2008 is to ensure Hillary gets elected?
With interest rates already at rock bottom, how will the Fed deal with a future crash?
* * *
Richard writes in a comment:
What sucks about righties having no control over the media is that questions that would embarrass liberals never get asked. Are the lefties who were howling about the damage Brexit had done to the U.S. stock market a few months ago issuing any recriminations? If things had been reversed the top outlets would be running news stories mocking those people, or at the very least calling them to account, forcing them to defend themselves with the weapons they chose to fight with. But it’s just going to be forgotten because it’s too much reality for the reality-based community to account for.