Trump who? Why the Fed cut rates, ignored politics and boosted bulls
The Federal Reserve has juiced a robust US economy and surging sharemarket with another reduction, despite the president-elect’s inflationary policy platform.
Ladies and gentlemen, it’s time to play a little game of “you’re the central banker”. Here’s the setup as players consider whether to cut, hold or even raise interest rates:
The sharemarket is at a record high
House prices are at a record high
Bitcoin is at a record high
The national debt is at a record high
A politician with a raft of inflationary policies will be in power in the coming months
Economic data has surprised to the upside over the past few months
Core inflation is sitting above 3 per cent, and has been for 41 straight months.
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James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
