Wednesday, May 6, 2015

Interest rate hike in 2016 possible

The economic statistics that came out of the US over the last five months has been weak and I always thought the forecasters that thought the economy was growing at 3 percent per annum were totally out of reality. The truth is the US economy is slowing down despite the fact that interest rates, the fed funds rate has been close to Zero since 2009... Six years....

I think and I've been thinking for a long time. I was thinking the Fed will not increase interest rates unless there is very high inflation like Five, Ten percent. Before that they will not increase it. They will always find an excuse to not do it. Either from Dollar or weakening economy or bubble in stock market where if they increase it, stocks will down. So my view is until 2016, no interest rate increase.