Did the Fed blink?

CNBC’s Jim Cramer opined that Jerome Powell, Chairman of the Federal Reserve, has blinked. In early October Powell stated that he thought current Fed rates were far short of the “neutral” rate that neither stimulates nor dampens the economy, implying more rate hikes for 2019. Yesterday, Powell said that the rates were close to the neutral rate. Equity markets loved that news and stock prices soared.

Say what you want about Jim Cramer’s on-air histrionics, but he is a VERY smart man and was very successful running a hedge fund. He has been critical of the stance of Powell and the Fed regarding interest rates and the US economy. It looks as though Powell has listened to Cramer, either explicitly or implicitly.

I think it is a sad state of affairs that more Americans know who Kim Kardashian is (I don’t care if I spelled her name correctly) than who Jerome Powell is. Ignorance is NOT bliss!

FWIW, Cramer does not believe that China is a “friend” of the US. I believe that China, at least in their own hemisphere if not both, wants to be the dominant world power. Whether they can accomplish that goal before their population gets really old is an open question, in my opinion. (FYI, in 2017 the US trade deficit with China in goods AND services amounted to 1.7% of US GDP. I guess you can decide whether or not that’s a significant number.)

I love cars, but I live in the real world. As much as I despise politics, what large national governments do affects us all whether we realize it or not.

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In an episode of the original Top Gear, the hosts stated their opinion that Lancia has built more great cars than any other company in history. On this day in 1906, Lancia was founded.

https://i0.wp.com/cdn.hiconsumption.com/wp-content/uploads/2017/12/1974-Lancia-Stratos-HF-Stradale-0-HERO.jpg

From hiconsumption.com a picture of the Lancia Stratos, one of the most successful rally cars in history. I really like the look of this car except for the box handle spoiler at the back of the roof.

 

https://timedotcom.files.wordpress.com/2017/11/1975-lancia-fulvia.jpg?quality=85&w=1717&h=966

From thedrive.com a picture of a Lancia Fulvia. A recent episode of Wheeler Dealers featured this model.

Fiat purchased Lancia in 1969. At first, the Lancia name stayed “independent” and the production of a model like the Stratos was a manifestation of that “independence.” Eventually, Lancia models really became badge-engineered Fiats.

At this moment I believe the only model with the Lancia name is the Ypsilon “supermini” built on the Fiat Mini/Fiat 500 platform. If Wikipedia is to be believed, then Lancia production has declined dramatically: from 300,000 cars in 1990 to 60,000 in 2017. Lancias were sold officially in the US only from 1975 to 1982. As I have written before a Stratos model recently sold on Bring a Trailer for $440,000.

 

I’m sorry, but does any other place exist where one can read a discussion of Fed policy AND about the Lancia automobile? If you like this blog, PLEASE tell your friends and share the blog URL (https://disaffectedmusings.com). Thanks.

 

P.S. From corvetteblogger.com comes this news about the key fob and LOGO for the C8 Corvette being unearthed from an FCC filing. Very big news, IMO.

 

#somanycarsjustonelife

#disaffectedmusings

 

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4 thoughts on “Did the Fed blink?

  1. I hope that the Fed Chairman blinked. Several Conservative economists believe that the Fed Chairman is a Never-Trumper deliberately trying to damage the economy to help bring Trump down.

    Like you, I don’t like the “handle” on the Stratos … The Fulvia is a fine design …

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    1. I don’t know that I agree that Powell is a “Never-Trumper;” after all, it was Trump who appointed Powell to Fed Chairman. Also, a hard-line ideologue would not have changed course like Powell did yesterday. I do think that Trump’s constant public criticism of the Fed is inappropriate and could have an effect opposite to that which is desired by “forcing” Powell and the Fed to show that they are independent of politics. Everything has diminishing marginal returns and that includes tweets by the President.

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