Stocks put in a rally today despite a sharply lower adjustment to 1Q GDP to 1.8% from 2.4%.
That is twenty five percent lower!
The Fed will not be ending QE anytime soon.
They may call it something else. They may change what they are buying and how they are buying it.
But the Fed is going to remain 'accommodative' for the time being.
The problem they face is that their money creation is going right into the banking system where it is being channeled into financial assets. They may seek to change that. Without serious cooperation from the dysfunctional Congress and the crony captured White House, it is hard to see how they can.
