How will the Fed explain away No Rate Increase?
Egon von Greyerz
December 14 2015
For face saving reasons the Fed definitely must increase interest rates on the 16th.
This is what the Fed has led the market to believe and any deviation from this would give the Fed a vote of no confidence from the investment world.
Still, it is difficult to comprehend how anyone could have confidence in the Fed. They have no strategy, no policy but are just reacting to events. They even admit this themselves by declaring that their decision is data driven.
But even when the data and events stare them in the face like in 2007-8 they did not recognise the crisis as it was unfolding.
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