My prediction is the FED chickens out after the first rate hike. We are addicted to negative interest rates. Governments, corporations, Wall Street, and debtors of all kings will react violently when they are raised.
Distortions by negative real rates are now deeply embedded in our economy.
Didn’t help… raising interest rates into the middle teens seemed to help but at what cost. This is why keeping inflation under control is the best policy. Of course with the excuse for a ?leader? we have today… it’s a wonder anything is under control.
And now this idiot wants to defend European Borders while ours is an absolute mess.
Can we respect laws when the ones charged with enforcing them do not.
Last I heard, 4 rate hikes planned, .25% each one. That is a whopping 1% for the year. Which still gives savers a negative return. Get real!
But stopping asset purchases, as the FED should, will have a bigger effect on rates. Going from 120 billion $ of mortgage purchases a month to none is going to put huge pressure on rates. But they will chicken out on that promise too when the Real Estate agent lobbyists cry enough.