It was in February 2016 when Japan adopts negative interest rate policy. For the next 6 months or so, the stock market barely moves, consolidating between 15000 to 17000 range.
In Sept 2019, President Trump tweeted about his support for zero or negative interest rates policy and pressured FEDs to do it asap.In May 2020, he renewed his calls once more,claiming other countries are already enjoying the gift.
This is what the Fed's chairman, Jerome Powell said :
“When you have negative rates, you wind up creating downward pressure on bank profitability, which limits credit expansion,” Powell said in a congressional testimony.
President Trump is running out of time, with his reelection coming up in November 2020 and he needs to prop up the stock market to a new level. Could this NIR policy be his saviour ?
If the bear camps are right about this recovery as too sudden and premature, then we could see a retest of the March low again. (yellow)
Alternatively, this V-shape recovery could already be playing out and shooting for a new high. (blue)
In Sept 2019, President Trump tweeted about his support for zero or negative interest rates policy and pressured FEDs to do it asap.In May 2020, he renewed his calls once more,claiming other countries are already enjoying the gift.
This is what the Fed's chairman, Jerome Powell said :
“When you have negative rates, you wind up creating downward pressure on bank profitability, which limits credit expansion,” Powell said in a congressional testimony.
President Trump is running out of time, with his reelection coming up in November 2020 and he needs to prop up the stock market to a new level. Could this NIR policy be his saviour ?
If the bear camps are right about this recovery as too sudden and premature, then we could see a retest of the March low again. (yellow)
Alternatively, this V-shape recovery could already be playing out and shooting for a new high. (blue)
評論:
It looks like the blue line option wins over the yellow line , for now.
