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29/04/17
17:23
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Originally posted by Powderkeg
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IMO Fed must be desperate to raise rates - they need the ammo to counter next cyclical downturn otherwise more QE is all they have (and it would look very ugly if they just keep running the printers on the global reserve currency). But at this point Fed appears boxed in since raising rates on the back of the Q1 0.7 GDP growth could shake stock market confidence and bring forward the downturn they fear... Catch 22.
And agree Aus seems pretty tapped out now (esp if China goes tougher with their capital controls. Same for Canada. Potential butterfly effect of a downturn anywhere never been much greater IMO
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I don't think the Fed are that stupid to raise rates just so they can drop them. It's all depending on data. Very soon the dodgy reporting system will start to backfire and will start to churn out negative growth figures all round.