instead of four climbs of types, two. That is what today has given you to understand that awaits us in 2019, the Federal Reserve following its decision of monetary policy, which, as everyone expected, the central bank raised rates another quarter point, to despair of Donald Trump, he doesn’t quite understand what is meant by the words “independent central bank”.
In theory, two climbs instead of four should be a good news for the market. Even more so because the Fed tends, with pinpoint accuracy, to predict more rises in rates of which then takes place. And, however, Wall Street reacted to the announcement, losing everything they had gained in the day and a little more.
The explanations of the fall of the Dow Jones of more than 1% are for all tastes. Some say that is due to the disappointment of the operators, who hoped that in 2019 the central bank only provided a single rise in interest rates. Others see the thing exactly the contrary: the fact that the Fed is moderating its highs of types, in a context in which there is increasing volatility, the major indexes are in a correction phase, and the doubts about the evolution of corporate profits are increasing is simply the sign that 2019 will be a difficult year.
The exegetes of the Fed – which in the past were examining the innards of birds to see if it was going to rain – have emphasized that the statement of the central bank no longer says “expected more gradual increments” are needed, but only that it “judges that some climbs graded more” would be relevant.
According to the criteria of
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