3 Things – Fed Mistake, ECB QE, Housing

Jon Banking, Economy, Energy, Fiscal Policies, Market Commentary, Real Estate

The Fed May Be Making A Mistake
On Wednesday, the Federal Reserve made their latest monetary policy announcement. Janet Yellen, the current Chairwoman, made several statements that led the markets to believe that they remain on course for increasing the overnight lending rate this year.
*FED SAYS ECONOMY HAS BEEN `EXPANDING AT A SOLID PACE’ *FED CITES `STRONG JOB GAINS’ AND LOWER UNEMPLOYMENT RATE *FED SAYS INFLATION EXPECTED TO DECLINE FURTHER IN NEAR TERM
However, the real state of economic expansion, as discussed yesterday, is highly questionable as the global deflationary forces have already begun to wash back onto domestic shores. While the Federal Reserve stated they were not worried about the decline in oil prices, as it boosts disposable household incomes, it is a point that they should reconsider since there is little evidence supporting that claim.

This post was published at StreetTalkLive on 29 January 2015.