Loading ...So, exactly “when” are Fed actions are “not bullish?”
I would suggest now.
As I noted in this past weekend’s missive:
“Lower rates have less impact on the ‘economy,’when the monetary transmission system is weak. This is evident from the fact that surging asset prices have left 80% of the population behind in terms of higher levels of prosperity. This also is why tax cuts failed to work as intended. After a decade of low rates, and excess liquidity, the ability to ‘pull-forward’ demand has become limited.”
While, in the short-term, it may seem that whatever the Fed does is “bullish,” as the performance of the stock market since 2009 would seem to support, it has been a function unbridled fiscal largesse. As shown in the chart below, the Fed’s actions have been supported by a massive amount of Government spending as noted last week:
https://www.zerohedge.com/news/2019-08-05/no-matter-what-fed-does-its-bullish-right