Federal Reserve signals it will help economy if needed


CNBC: Stocks surged on Tuesday, climbing back from a big rout in the past month, after Federal Reserve Chairman Jerome Powell signaled the central bank was open to easing monetary policy to save the economy and as trade tensions eased amid comments by China and Mexico.

The Dow Jones Industrial Average climbed 450 points, or 1.8%. The S&P 500 jumped 1.8% — heading for its biggest one-day gain since Jan. 4 — and the Nasdaq Composite jumped 2.3%. Stocks that have been hit hard during the month-long sell-off led Tuesday’s comeback, including Apple and bank shares.

“The market wanted to hear from Powell. When Powell says ‘we are watching the market’ — whether it’s right or wrong — the market starts believing in a Powell put,” said Keith Lerner, chief market strategist at SunTrust Private Wealth. He also noted “sentiment became extremely negative on a short-term basis.” more …

Opinion: That’s a good thing right? The Fed helping the economy by dropping interest rates IF NEEDED!

That is the same Fed that just last October said it would raise interest rates 3-4 times. The ensuing 20% drop in the stock market by Christmas caused Fed chief Powell to take rate increases off the table.

Now the conundrum.

In January the stock market, happy with Powell’s remarks, rallied and gained back most of the carnage that the Fed caused to begin with. So with GDP a robust 3.1% and inflation seemingly under control (below 2%) why is the Fed now talking about rate cuts?

Because the economy is so propped up by insurmountable debt and printed money, the Fed cannot raise rates to prepare for a future recession. So with little or no stimulus to work with, once interest rates get back to zero, the only option left for stimulus will be QE4.

And since QE4 is the road to inflation, the markets will necessarily fall and the Fed will be powerless to stop it. QE5 and 6 will likely follow.

What a backdrop for future financial catastrophe as described in Revelation 6:5

When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand. And I heard a voice in the midst of the four living creatures saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not harm the oil and the wine.”

A quick look at the first two horsemen will bring clarity:
  • Revelation 6:1-2: with the church gone (2 Thess. 4:16-18; Rev. 4:1) a false messiah with a peace plan takes the world stage on a white horse mimicking Christ
  • Revelation 6:3-4: peace is taken form the earth

A world plunged into uncertainty, plagued with wars and rumors of wars (Matthew 24:6) will find the prices of everything rising and with it panic.

Imagine the masses who had it all, now being forced to work a full day to earn enough to feed themselves for that one day, while the rich (oil and wine) grow more wealthy.