Wednesday the Fed will end its two-day meeting without a scheduled press conference to follow.
Markets should not expect and movement in rates, since Fed chief Janet Yellen already tipped of the bond pits that no rate hike will happen after a meeting without a press conference.
That’s why the September meeting is the one where markets believe a rate rise will occur, but it won’t.
I say that because traditionally the Fed raises rates in 0.25% jumps as the smallest increment. The Fed can’t move that much because of the fragile state of the US economy.
Now could the Fed raise 0.1% or 0.15% as a more symbolic gesture that it wants to move higher? More likely in my opinion in order to beat back the bond market vigilantes, but I still only put that move at 20% chance.
This will mark the 53rd meeting where the Fed will have no change in interest rates, which means the US economy has done little growth for the last 4.5 years. Nice work, more than $4 trillion created and spent to prop up the Wall Street banks’ balance sheets, while giving the US citizens nothing on savings and little in wage increases.
If you were not in the stock market the last 4.5 years, you have little to show for the trillions we need to pay back.
Sounds a little like Greece doesn’t it? It’s all Greek to me.