Fed Chair Janet Yellen crying in
happiness that she took the burden
off Trump to get all his dereg done.
Let's keep this short and sweet, The Fed news this morning is very bullish.
After yesterday's close the Fed passed all the banks in their stress tests. JP Morgan and Citi came out with big stock buybacks after the close. There will be more.
Why this matters is that President Donald Trump has had difficulty getting support which worries investors that pro-business legislation may not pass. Part of that pro-business legislation is deregulation with the intention to give banks more room to work with less capital. Well the Fed just beat Trump to it. How bullish is that?
The Fed allowed banks to do what they want according to each bank's proposals which included using less capital to drive big buy backs.
The Fed is comfortable that the economy is on steady footing. That steady economy is doing the job that complex political deregulation negotiations would look to accomplish.
This is a huge connection that many may or may not have made.
If you agree, please share. We think the market's headed to new highs.
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