Janet Yellen (The Federal Reserve) did not raise rates today! Of course not. Here's why!
Today (September 21st, 2016) The Federal Reserve announced their decision not to raise interest rates this month but stated that an interest rate rise would most likely happen by the end of 2016. Prior to today's announcement, there was much speculation on if an interest rate rise actually would or would not occur. Many analyst held a 50% chance of an interest rate rise occurring but as the days continued closer to today's announcement many of the same analyst lowered their belief that an interest rate rise would occur down to only 15%.
Now the question is why? Why did analyst lower their opinion by 35%? It is simple - as Dr. Bart DiLiddo stated in one of his latest news-letters to the subscribers of his Vector Vest service - Janet Yellen did not want not take the risk of messing up an election year by raising interest rates and possibly causing markets to tank before a presidential election. This is why Janet Yellen keeps on hinting on a rate increase that would take place sometime towards the end of 2016 i.e. December which would be post the presidential election in November 2016. Janet Yellen probably did not want a repeat of last year’s result when the Federal Reserve slightly raised rates in December 2015 and markets fell, especially prior to an presidential election.
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Thank you for reading!
Until next time,
- Ford Mogul
The FED won't raise rates, they can't raise rates. Happy to upvote. Now following and looking forward to reading more of your posts. Catch us also on Twitter Twitter✔. Cheers. Stephen
Hey Stephen,
Thank you for the upvote and follow! I think the election will heavily influence The FED's decision on "raising rates by the end of 2016", let's see what happens.
Absolutely. No one wants a CRASH on their watch..!! Stephen
Not only that, but raising interest rates during an economic downturn isn't a good move with the bubble they created. In addition itd destroy their balance sheet. As buyers of last resort for the past failed bond auctions, theyd lose their ass.
Hey Tee-em,
Well in the near/short term the economy is in a sideways/down trend but the economy overall has been viewed as being in an uptrend since the economic recovery of 2008's market crash (depending on who you speak to of course). Personally, though, I just do not see the necessity to increase rates right now. Let's see what happens by the end of this year like the FED says.