Wednesday, June 15, 2016

The Fed Either Raise Rates Now or Loses Face to Invisible Hand Later #TheFed

If the Fed is waiting for the labor market to tighten as the global economy weakens and the private sector slowly transitions from increasing expensive physical labor to automation, robots, and/or artificial intelligence, they'll be waiting a long time to raise rates.  The Fed either understands this trend, thus, raising rates rather unexpectedly in 2016, or the public gives them way too much credit for influencing and understanding markets and the global economy.  If it's the latter, the Fed, kicking and screaming like a toddler being told NO, will be dragged by the invisible hand to raise rates as full blow liquidation in 2017 forces an undeniable crisis by 2018.

Headline: Fed delays rate hikes, cites labor market concerns

The Federal Reserve pushed back its plans to raise its benchmark short-term interest rate, a widely expected move following a series of mixed US economic reports.

After a two-day policy meeting, the Federal Open Market Committee unanimously voted to hold the federal funds rate between 0.25% and 0.50%, citing weakness in recent employment data.



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