If consensus view on rates materializes, it means continued US fiscal drag via Fed policies. Then you have to wonder if this becomes semi-permanent policy as each European nation goes thru their own Brexit-like catharsis now over a the next year.
#Brexit vote means #Fed ambitions for two rate rises this year have been placed on hold https://t.co/LUgbnsu2iY pic.twitter.com/SAvkXkdpwT
— The Straits Times (@STcom) June 24, 2016
There will "never" be a raise (not any time soon at least), they will always find an excuse to not do it...
ReplyDeleteThere is a higher chance of NIRP than rising rates, just give it some time.
Its looking increasingly so and permanent QE .... this is bad policy...
ReplyDeleteTo an orthodox economist, Brexit isn't a political reaction to orthodoxy's flavor of "economics" but is a plain-vanilla "shock." And interest rate policies are the tool of choice for dealing with shocks. In six months time, they can tell you exactly how much "worse" the shock would have been were it not for their interest rate policy. *cough* Cranky old things... economists are joke *cough*
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