Show us some backbone, please or could the Fed raising rates create a slow motion Lehman-like chain-reaction?
from Seeking Alpha: the Spineless Fed by Parke Shall
Summary
- Market is anxiously awaiting Fed minutes today.
- Fed needs to remain hawkish and confirm second rate hike if they want to keep what little credibility they have left.
- With inflation now heading toward Fed target, there are many options Fed has before needing to go NIRP.
Today is certainly going to be a big day for the markets. Today we will get the latest round of thinking from the Federal Reserve as to whether or not they want to continue with rate hikes this year. TheToday is certainly going to be a big day for the markets. Today we will get the latest round of thinking from the Federal Reserve as to whether or not they want to continue with rate hikes this year. Fed had anticipated four rate hikes this year, but as markets have looked a little bit shaky, the Fed has become even more spineless and is deathly afraid to raise rates unless everything is perfect and markets are ripping the all-time high.