Jim Rickards: The Fed Is Going “Cold Turkey”

[allthingsluxury]

This is the most aggressive tempo of rate hikes of any major central bank and puts U.S. policy rates significantly higher than those in the U.K., Japan or eurozone.

The issue for investors is whether the Fed is raising rates too aggressively considering the strength of the U.S. economy. Higher rates imply a stronger dollar, imported deflation and head winds to growth.

If the U.S. economy is on a firm footing, then the rate hikes may be appropriate, even necessary to head off inflation...


Click here to watch this video and to read more:

https://jimrickards.blogspot.ca/2018/04/jim-rickards-fed-is-going-cold-turkey.htmll

[1714024926]

1714024926

[godzillarekt007]

I tried to but it says the page does not exist . Raising rates is probably good though, if they let them go to 0% or negative then you are likely heading for a deflationary economy like Japan's.

[Cult]

The best thing you can do to the rate is let it float freely and let the free market determine it. Any manupulation inevitably results in negative consequences at some point.