With a 98.3% probability heading in, there was really no doubt the most-telegraphed rate-hike ever would occur, but all eyes are on the dots (rate trajectory shows 3 hikes in 2018), inflation outlook (unchanged), and growth outlook (faster growth in 2018), and lowered unemployment outlook to below 4%. The Fed also plans to increase its balance sheet run off to $20 billion in January.
Authored by Pater Tenebrarum via Acting-Man.com,
An Astonishing Statistic
In 2017, stock issuance by SPACs has made a new post-crisis high, surpassing the last peak in 2007 which saw the equity market peak in October of that year prior to the crisis. Before we go any further, we’d better define a "SPAC" just in case you’re unfamiliar with the acronym, although they are also often known as “blank check” companies or “blank check" IPOs. From Investopedia.
In previewing today's FOMC decision, which will also be Janet Yellen's last rate hike decision and press conference before she is replaced by Jay Powell, there is a TL/DR version, which is summarized by the chart below and which shows that according to the market, the probability of a rate hike today is 100%... which is really all you need to know as the rest is Fed explanations and forecasts, both of which are always wrong:
Desperate to get more excited about today's episode of central planning? Below is RanSquawk's full preview of what to expect from Yellen today:
It’s fairly easy to categorize Patrick Byrne, the founder of Overstock.com, as a visionary, although he is usually described in less glowing terms in the mainstream media, a typical adjective being “controversial”. Byrne founded the $1.4 billion internet retailer of mainly “closeout” merchandise in 1997. In January 2014, Overstock became the first major online retailer to accept Bitcoin in payment for goods. Byrne explained how he became an advocate of cryptocurrencies in an interview with Adam Taggart of PeakProsperity.com.