Interest Rate Policy: Negative Means Horny Investors

Stocks add to gains after FOMC minutes
Yesterday 02:36 p.m. ET • QQQ • SA Editor Stephen Alpher
The averages are at session highs after the FOMC minutes confirmed the central bankers to be far less positive about the economic outlook than they were six weeks earlier when they hiked interest rates.
Some on the FOMC said the “dots” – which currently show expectations for four rate hikes this year – are confusing markets, and discussed adding fan charts to their outlook to convey how uncertain their forecasts are. This would lead to another issue though: Whether that “fan” should be allowed to extend below zero … There’s that negative rate talk again.
The Nasdaq (NASDAQ:QQQ) is higher by 2.25%, the S&P 500 (NYSEARCA:SPY) by 1.7%, and DJIA (NYSEARCA:DIA) by 1.65%.
The 10-year Treasury yield is ahead by six basis points to 1.84% TLT -0.8%, TBT +1.6%
Previously: Fed minutes show worry over market selloff, lack of inflation (Feb. 17)

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