Listen: FED, UNH, Editor discussed on Financial Exchange with Barry Armstrong
"Democratic control the Senate mean effectively that trying to repeal or replace ObamaCare is effectively it's been on. So we're gonna have what we have anything. The fact that you now have Democrats controlling how argues that you may the and you've seen in the gubernatorial races around the country. You may beat the Medicare expansion several effectively fed that they do expand Medicare payment, and that's actually very good for healthcare because it means that the hospital in particular who lesser editor that had to basically eat those costs are now going to get reimbursed because you know, the government. You know, you look at like very strong yesterday. United help UNH the country largest healthcare provider on. Huge. That one. Well. No, I think that's really what's going on more of the organizations are going to get paid and less likelihood sort of you know, we do that we can't quantify. Let's talk about what we have coming up today in particular, the fed coming out at two pm with their latest move or in this case likely a lack of a move today. What kind of thoughts do you have with regards to the fed going forward in right now? Well, believe it or not I actually think the fed and interest rates is more important to the market then that's right now. I I know, you know, most people they really we're all talking politics. Yeah. I hear you. But it, you know, politics are less of a market story than the level of interest rate. And there are two things going on right now. Number one. They're raising rates as we know. Although they're probably knock later raised today. They're going to wait and then three next year. But they're also reducing the size of the balance sheet raising rates as long as you go gently. I think is okay. What seems to be scaring people more than anything else is the fact that they're also on reducing the size their balance sheet which in theory, reduce liquidity in the system. I think those fears are a little bit overblown because you know, how Wall Street work guys always liked to pay. Oh, but you're gotta watch this. And somehow these people get our attention because they see something we don't it's a fair point. I'm aware of it as I am of rising rate. I don't think that's going to stop the momentum in the economy that more link who incredibly strong employment incredibly solid GDP growth Bill. I'm still bullish. But, you know, the bed in in in rising rate that you know, it's out there. It's an issue at one thing that caught alright today just because of the. The scale of it was the the pullback that we're seeing in energy right now specifically in oil prices. And the last time that we saw a significant pullback oil prices into twenty fifteen into early twenty sixteen at effectively through us into an earnings recession for two quarters because of that. Now, you're not seeing the same types of decline in prices here. But does it make you nervous? If prices continue to drift lower that you may see some of the cap ex in that sector, that's fueled US growth start to pull out. Oh, that's a very good question. And there's this little T there. And."