Rate Hike Possibility Sends The Dollar And Futures Higher
Good news is good news, bad new is good news. Any questions???
The dollar shot higher against other major currencies on Tuesday, helped by hawkish comments from a Federal Reserve official who emphasized a March rate hike is possible.
Philadelphia Fed President Patrick Harker said he could support raising interest rates at the central bank’s March meeting.
“I think March is on the table. I would never take a meeting off the table,” Harker told reporters after a speech in San Diego. He also reiterated his support for about three rate hikes this year.
This is fascinating for two reasons. First, if the FED does hike in March, it would presumably put itself on a collision course with President Trump. As outlined earlier Trump’s Shocking Showdown With The Fed & Janet Yellen
Second, it is hard to imagine how higher interest rates and lower liquidity levels would be beneficial to stocks at today’s bubble valuation levels.