Citi Research’s 9-Step Guide To Fed Policy In The Event Of A Downturn

In the wake of the Brexit vote, the next Federal Reserve interest rate hike has been put on hold. Many economists still expect another hike by the end of 2016, but others are concerned that the Fed’s next move will need to be some form of easing.

Unfortunately, with interest rates near record lows, the Fed’s ability to ease is limited. However, according to Citi Research, the Fed still has plenty of options for stimulating the economy.

In a new report, Citi analyst Andrew Hollenhorst outlines nine potential steps the Fed could take in the event of an economic downturn:

  • 1. Stop talking about a need for rate hikes.
  • 2. Start talking about leaving rates flat in the future and confirm this outlook via the “dot plot.”
  • 3. Cut interest rates from 0.25-0.5% to 0-0.25%.
  • 4. Implement another “twist” of selling short maturity and buying long maturity.
  • 5. Implement…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common SenseI don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!