How do you feel about interest rate cuts? What's the first thing that comes to mind?
Well, it all depends on whether you work in financial markets or not. For consumers rate cuts are typically associated with lower mortgage costs (but also rising house prices), so whether you welcome them or not depends on whether you are already on the housing ladder or not. Most people in the U.S. do have a mortgage, so that's why Kamala Harris welcomed it:
"The Fed's rate decision is welcome news for Americans."
But not everyone agrees that the economy is "in a good place", and ZeroHedge, for one, thinks that "the government is fooling most of the people with fake data" and that unemployment data is much worse that what is reported by the Department of Labour on a regular basis.
But let's leave the economics aside and think of the very specific language (and very much repeated from one article to the next) used in describing the impact of interest rate policy decisions on the financial markets. How often would you come across phrases such as:
✍️kneejerked higher
✍️revised down / up
✍️...rallied all the way back as Powell spoke
✍️Small Caps exploding almost 2.5%
✍️whipsawed around by the DOE data
✍️uber-dovish / uber dove
✍️"most-shorted" basket
✍️FX markets start pricing...
And, oh my, what about the colourful language?! This would only be acceptable in a blog post, apart from perhaps the first one, not in a broadsheet newspaper.
🔇stole the jam out of the equity market's donut
🔇stocks started to puke lower
🔇Powell pissed in the punchbowl
Well, it all depends on whether you work in financial markets or not. For consumers rate cuts are typically associated with lower mortgage costs (but also rising house prices), so whether you welcome them or not depends on whether you are already on the housing ladder or not. Most people in the U.S. do have a mortgage, so that's why Kamala Harris welcomed it:
"The Fed's rate decision is welcome news for Americans."
But not everyone agrees that the economy is "in a good place", and ZeroHedge, for one, thinks that "the government is fooling most of the people with fake data" and that unemployment data is much worse that what is reported by the Department of Labour on a regular basis.
But let's leave the economics aside and think of the very specific language (and very much repeated from one article to the next) used in describing the impact of interest rate policy decisions on the financial markets. How often would you come across phrases such as:
✍️kneejerked higher
✍️revised down / up
✍️...rallied all the way back as Powell spoke
✍️Small Caps exploding almost 2.5%
✍️whipsawed around by the DOE data
✍️uber-dovish / uber dove
✍️"most-shorted" basket
✍️FX markets start pricing...
And, oh my, what about the colourful language?! This would only be acceptable in a blog post, apart from perhaps the first one, not in a broadsheet newspaper.
🔇stole the jam out of the equity market's donut
🔇stocks started to puke lower
🔇Powell pissed in the punchbowl