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Monday, March 06, 2017

The Fed’s Getting Ready to Raise into Weakness

[Ed. Note: Jim Rickards’ latest New York Times bestseller, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis, is out now. Learn how to score your free copy here. This vital book transcends geopolitics and rhetoric from the Fed to prepare you for what areas in gold, markets and more you should be watching now.]

I was surprised this week that the stock market reached new highs — despite the fact that expectations of a March rate hike by the Fed moved from 40% to 60% in three days. Today those expectations are about 75%.

But I’ve been calling a March rate hike since late December. I was almost alone in that view. Wall Street analysts were paying lip service to the idea that the Fed might raise rates twice before the end of the year, but said the process might begin in June, not March. Market indicators were giving only a 25% chance of a rate hike within the past couple weeks.

Is it because I’m smarter than all these other analysts?

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3 comments:

  1. The rate hikes have been waiting for Trump to come into office. the question is can trumps own stimulus overcome them.

    ReplyDelete
  2. Been waiting for interest rate hikes for 7 years. I'll have a great deal more a month to spend. NOW we will be spending money since our income isn't stuck.
    Dinner out, New clothes, etc. All have been put off since 2010.
    Can't wait for rates to go to 5 or 6 percent. I may retire!

    ReplyDelete

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