This week was jam packed with news events of important economic consequence. The UK election results and the US-China Phase One trade deal grabbed all the attention; but I think the real event was the Federal Reserve’s policy comment.
Jerome Powell signaled that interest rates should remain on hold through at least 2020. He specifically stated that, “In order to move rates up, I would want to see inflation that is persistent and that is significant.”
That means the FED is willing to let the economy overheat. And a hot economy means a rising stock market. More analysts are raising 2020 S&P 500 forecasts to 3400 or higher.
Stay tuned !!!
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