Financial Review

Call It Neutral


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…..Fed moves to sustainability mode. Earnings season sighted. Wells Fargo still too stupid after 113-page report. Libor audio tapes implicate the Bank of England. Barclays CEO targets whistleblower. Swift-Knight. AT&T pays for 5G. And Gorsuch makes 9. Toyota’s All-American car plant. Tesla tops GM. Financial Review by Sinclair Noe for 04-10-2017 DOW + 1 = 20,658 SPX + 1 = 2357 NAS + 3 = 5880 RUT + 2 = 1367 10 Y – .01 = 2.36% OIL + .91 = 53.15 GOLD + .60 = 1255.40 Fed Chair Janet Yellen held a Q&A session today at the University of Michigan. Yellen said the Fed’s task has shifted from a post-crisis exercise of healing the economy to one aimed at sustaining progress. Yellen said, “Before, we had to press down on the gas pedal trying to give the economy all of the oomph that we possibly could.”  Now, she says the Fed is trying to “give it some gas, but not so much that we’re pushing down hard on the accelerator. The appropriate stance of policy now is closer to, let me call it neutral.” That still likely means two more rate hikes this year. Minutes of their March meeting showed that most Fed officials also expect to begin shrinking the bank’s $4.5 trillion balance sheet later this year, gradually reversing emergency bond purchases made during the financial crisis and recession.   In last week’s minutes, the Fed policymakers warned that stock prices were on the high side, specifically saying: “Broad equity ...
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Financial ReviewBy Sinclair Noe