Thursday, May 19, 2016

What Will The Fed Do When The Economic Uptick Ends?

What happens when economic uptick ends? Will the Fed continue the much needed normalization of rates, or will they yield to political pressure as the majority panics? These questions will likely be answered within a year.

History predicts a lot finger pointing and bad decisions aheads.

Headline: Gundlach Says Fed Ready to Raise Unless Economic Data Weakening

Jeffrey Gundlach, chief executive officer of $95 billion DoubleLine Capital, says the Federal Reserve has changed the conditions required for a potential interest-rate hike this year.

“The Fed has shifted from, ‘if the data pattern improves we will have the green light to hike,’ to ‘unless the data pattern weakens we have the green light to hike,’” Gundlach, 56, wrote in an e-mail Thursday.



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