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Great Graphic: US Bill Yields and Fed Hikes
Wednesday, December 16, 2015 10:41
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marctomarket.com / by Marc Chandler / December 16, 2015
There are many investors and observers who do not think the Fed ought to raise interest rates today.
The Fed’s targeted inflation measure, the core PCE deflator, stood at 1.3%, well below the 2% target. They see the fresh sell-off in oil prices and are more concerned disinflation than inflation. Over the past week or so, more concern has been expressed about the sell-off in the high yield bond market.
Others are concerned about the strength of the dollar and the weakness abroad. Some economists express concern about the lackluster growth. Rather than accelerate as the year progressed, the economy appears to be growing slower in H2 than it did in H1, despite the mere 0.6% annualized expansion in Q1.
These doubts have given rise to speculation that the Fed will quickly realize the error of its ways and reverse the ill-conceived rate cut by the end of next year. Some argue that this is the same fate that has befallen every other high income central bank that has lifted rates since the crisis, including the ECB.
The post Great Graphic: US Bill Yields and Fed Hikes appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/12/16/great-graphic-us-bill-yields-and-fed-hikes/
