Today ends the Fed’s two day meeting with no action taken. Analysts will parse that statement for clues about a possible September rate hike, but as I have said for a long time, the Fed should absolutely not raise rates anytime soon. Oil is tame. Inflation is non-existent. Our economy is mediocre at best. Europe is teetering and Japan is, well, Japan.
Raising rates to have some ammunition for the future is the single most absurd argument I can recall. The Fed has plenty of outside the box tools to combat whatever monkey wrench is thrown our way. Ben Bernanke’s unprecedented are proof of this. Leave rates alone.
Trading wise, the model for today is +/- .50% until 2pm and then some strength, but the trend is a weak one now as opposed to a strong one six weeks ago.
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