Fed Vice Chair Stanley Fischer sought to reassure markets just after the close.
“On Wednesday, he [Stanley Fischer] said that spillovers from [rate] tightening ‘will be manageable.’
It’s possible that U.S. and foreign economic growth can align, Fischer said. He added that downside risks from overseas are noticeably smaller and that foreign growth appears more entrenched.
Fischer said that China’s economy also seems to be on more solid footing.”
Stanley, you are not all that reassuring.
This seems to be just another self-serving exercise from the Fed which wishes to get off the zero bound so that they can cut rates later on when their latest financial paper asset bubble starts deflating.
Stocks were wobbly into the close after giving up most of their gains after yesterday’s loss.
I am not recommending going short, by the way. These guys have more paper than you have patience.
Geopolitical jitters affecting the markets include the freedom wars in the Mideast and the Kid in North Korea.
And of course the rising populism in Europe, particularly with an eye to this weekend’s French election which seems to be following the divergence from the status quo to both the left and right.
Metals were off on ‘renewed US dollar strength’ according to the financial spokesmodels, although if you look at the DX chart the ‘strength’ is greatly overstated. Well, that’s what they do.
