{"id":63163,"date":"2022-07-30T09:32:00","date_gmt":"2022-07-30T14:32:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63163"},"modified":"2022-07-30T09:32:00","modified_gmt":"2022-07-30T14:32:00","slug":"what-happens-if-the-fed-doesnt-capitulate-on-interest-rates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63163","title":{"rendered":"What Happens If The Fed Doesn’t Capitulate On Interest Rates?"},"content":{"rendered":"
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What Happens If The Fed Doesn’t Capitulate On Interest Rates?<\/a><\/h3>\n<\/header>\n
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In the past stock markets used to rely on the innovation and profit reports of individual companies,\u00a0<\/strong>and while there were sometimes all encompassing events that would push equities in one direction or another,\u00a0in the last decade there has been only one factor that ever really matters:\u00a0 The Federal Reserve. \u00a0<\/strong><\/p>\n

The central bank has positioned itself as the ultimate arbiter of market rallies and corrections.\u00a0 In fact, most of the world is now placing all their investment bets on a single hope, that the Fed will capitulate on interest rate hikes, ignore the stagflation crisis and ramp up the printing presses once again with wild abandon.<\/p>\n

This is the sad state of most markets around the world and American markets in particular.\u00a0\u00a0Investors have enjoyed what amounts to a free ride for more than a decade based on the simple premise that the Fed will \u201cnever\u201d allow stocks to crash again.\u00a0<\/strong>\u00a0This assumption is predicated on the idea that the Fed actually cares about the continued stability of the markets.<\/p>\n

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After the latest Fed interest rate hike the speculation mills are swirling that the central bank will back off of rates as soon as November and refresh the easy money punch bowl.\u00a0 But we need to consider a question that almost no one is out there asking:\u00a0 What if they stopped caring?\u00a0 What if they never cared and stimulus measures were actually meant to achieve a separate agenda that is now finished?\u00a0 What if the Fed doesn’t capitulate?\u00a0 What is they just keep hiking?<\/p>\n

The original rationale given for rate cuts and QE measures was to offset wealth destruction caused by the 2008 credit crash.\u00a0 The scheme was NOT supposed to continue onward with new stimulus every year or every time stocks lost 10%-20%.\u00a0 Yet, that is exactly what happened…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What Happens If The Fed Doesn’t Capitulate On Interest Rates? In the past stock markets used to rely on the innovation and profit reports of individual companies,\u00a0and while there were sometimes all encompassing events that would push equities in one direction or another,\u00a0in the last decade there has been only one factor that ever really […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,431,534,661,662,3650,4318],"class_list":["post-63163","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-interest-rates","tag-monetary-policy","tag-qe","tag-quantitative-easing","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63163"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63163\/revisions"}],"predecessor-version":[{"id":63164,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63163\/revisions\/63164"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}