Will the Fed hike rates? Should it?

[aakashsangwan]

My prediction is the rate will not be hiked this time. China is slashing rates because of weakness, which will probably unsettle the Fed a bit as it suggests we may be close to another global recession. I expect this to lengthen the runway before rate hikes are enacted.

But some analysts are suggesting to increase the rates because they think china slow down is not a big concern and I think other major issue currently is every where the refugees accepting issue. But as of now situation is much better than few years ago but not stable yet to increase the prices. Lets see what they do?

These speculations are there for quite some time but most of the investors thinking fed will increase this time but not sure what happens because world economy is still not in a good shape. Still there are so many issues with world currencies falling except USD, china going down and Europe is still unstable...

I dont know about world economy but what i have annalyst that Asia is under Recession this time, with major china issue, which will make other neibhour countrys also effected. because in today situation china is a major production and distribution Hub for America , India and more countrys.

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[yayayo]

So my prediction was wrong. But despite the non-hike the market still collapses. What does this tell us about the market condition?

By not hiking the FED lost a lot of psychological influence, because after months of "hike-talk" and pushing expectations with a zero result in the end, market participants will now pay much less attention to what Yellen says.

ya.ya.yo!

[OROBTC]

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yayayo

I agree.  That the Fed could not raise rates, even a small 0.25% does show extreme perceived weakness in our economy.  Rates at zero are very unusual in history, I cannot recall any long periods (several years now) where rates were at about zero.

There must be a lot going on that our .gov and .fed is not telling us about...

[Barnabe]

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yayayo

I agree.  That the Fed could not raise rates, even a small 0.25% does show extreme perceived weakness in our economy.  Rates at zero are very unusual in history, I cannot recall any long periods (several years now) where rates were at about zero.

There must be a lot going on that our .gov and .fed is not telling us about...

If people believe 0% rates are fine, there is no problem at all. But we all know this can't go on forever...

[galdur]

Selling treasury bills to banks that buy them with money they "borrowed" for next to nothing from the Fed, which just creates new money by changing some figures in a spreadsheet

is probably a perpetual machine. Or maybe not. Anyway, it´s about time now for that regular debt ceiling crisis hand wringing, Uncle Sam´s fiscal year ends in ten days. So expect lots of hot air next month.