There's a chance tax reform may not get done!!! Inconceivable!!
10 years ago today, The Fed minutes were released sparking a buying frenzy pushing The Dow above 14k to a new record high - supported by a dovish Fed and a convinced public that job growth was recovering and all would be well. It turns out that the peak for the market that was followed a greater-than-50% plunge in stocks.
Week - US - President - George - W
That week, U.S. President George W. Bush said the figures signaled “a vibrant economy” but a poll of top Wall Street economists found more than half still think the Fed will trim rates again this month to help the economy get past a housing slump and a surge in mortgage defaults. U.S. employers added 110,000 jobs in September and August’s job losses were revised into a gain in a Labor Department report on Friday that lifted some worry about a recession in the near term.
CNN Money wrote on the day of the peak...
Stocks - Morning - Afternoon - Investors - Minutes
Stocks drifted higher through the morning, flattened out in the early afternoon and then began to rise as investors digested the minutes from the Sept. 18 Fed meeting, released at around 2:00 p.m. ET.
"I think the market had a knee-jerk reaction to the idea that the Fed can cut rates more, if they need to," said Steven Goldman, market analyst at Weeden & Co.
Sept - Meeting - Bankers - Interest - Rates
At the Sept. 18 meeting, central bankers cut interest rates for the first time in 4 years. The minutes showed that the decision to cut the fed funds rate by a half-percentage point cut was unanimous, with the central bank worried the housing implosion and credit market crunch could hit consumers and the broader economy.
Also important to stock investors: the minutes showed that the bankers were a bit more confident about a sustained inflation drop, provided that...
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