22 Nov

Paul Krugman to the Fed: Don’t Raise Rates

WRITTEN BY Surbhi Jain

Paul Krugman thinks the Fed should not raise rates

When asked whether the Fed is “on the right track” and whether it is “time to hike rates” during an interview with Kathleen Hays on Bloomberg Markets, Nobel laureate Paul Krugman said “No” without much delay.

Paul Krugman to the Fed: Don’t Raise Rates

The Fed doesn’t have the ammunition

According to Krugman, while uncertainty remains about when a recession or downturn will hit the US (SQQQ) (SDS), the question that we all should be asking is, “does the Fed have the ammunition to deal with it?” Krugman thinks the answer to this question is no because of the following factors:

  • For one, interest rates are already near zero, so the Fed cannot cut rates.
  • Inflation is low, so the possibility of cutting real rates (if a recession comes) would be ruled out.

Not this year and not the next

Krugman believes that the Fed shouldn’t be acting as if everything is normal when actually it isn’t. Inflation is moving up towards its target, but it still has a ways to go before it meets or exceeds the target. By raising rates in the US (SPY) (IWM) (QQQ), the Fed might just stop that from happening. It’s like a boat that is about to reach the shore, but then suddenly drifts away.

Thus, Krugman’s advice to the Fed is: “Don’t raise rates this year. Don’t raise rates next year.”

For now, Krugman sees a Trump slump in the making.

Latest articles

20 Jun

Will Refiners’ Earnings Plunge in 2019?

WRITTEN BY Maitali Ramkumar

Wall Street analysts expect refining firms' earnings to fall in 2019. Delek US Holdings (DK) and Valero Energy’s (VLO) earnings are estimated to fall less than 10% in 2019. However, the EPS of Marathon Petroleum (MPC), HollyFrontier (HFC), and Phillips 66 (PSX) are expected to fall 20%–40% this year.

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.

This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%.

The US-China trade war has already given a scare to Apple’s (AAPL) investors vis-à-vis the possibility of a 25% tariff on Apple goods being imported from its Chinese facilities. As a result, Apple might be considering shifting its plants out of China.

Yesterday, Greenlane Holdings (GNLN) fell a whopping 17.1%. The stock has now fallen 28% this month, and it hit its all-time low yesterday. Greenlane Holdings listed in April and priced its IPO at $17 per share. However, since the stock surged more than 25% after its listing, it has been a sorry story for Greenlane Holdings investors.

172.31.71.127