So the Fed decided to leave rates unchanged, which did not surprise me at all. See my last post about it in early September where I said they wouldn’t.

The fundamental problem that The Fed faces now is that the markets, especially foreign markets are going to front-run any expected rate hike. So markets will go down, and that gives The Fed the excuse it needs to not raise rates.

They can always just say, “Oh, it’s not our fault, but foreign markets are weighing on the US economy.” It’s the perfect scapegoat!

So in short, I was right.

 

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