The Turks shooting down a Russian military jet, these are the nightmares the Fed governors have.
As Yellen & Co move toward their mid-Dec. meeting still jawboning about a possible rate increase, world events may take the ball out of their hands.
Or flip it on its head and world events will provide the Fed with cover to not raise rates. This is what I have said since Jan. that there will be no rate increase this year.
To add more fuel to fire on whether we are in a recession, let’s look at Tiffany & Co., which reported results on Tuesday morning.
Tiffany’s revenue and earnings both missed and it cut its previous guidance for the holiday quarter and the year by 10 percent.
So you have retailers across the spectrum cutting guidance for the all-important 4th quarter and the year.
Wal-Mart, Macy’s and Tiffany all see strong headwinds. Meaning that the US consumer, as well as overseas buyers in the case of Tiffany, are pulling back on purchases.