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Surprise ! Surprise!: Fed Leaves Interest Rates Unchanged

TedTed
edited July 2015 in Fund Discussions
FYI: With Wall Street looking for any clues that tighter policy is coming, the Federal Reserve on Wednesday both declined to rate interest rates and provide any clues about when a hike is on the way.
Regards,
Ted
http://www.cnbc.com/2015/07/29/fed-leaves-interest-rates-unchanged.html

Bloomberg Slant;
http://www.bloomberg.com/news/articles/2015-07-29/fed-says-labor-market-improves-as-it-moves-toward-rate-increase

Comments

  • Obviously not surprising now, but I would be surprised if they haven't raised by December.
  • edited July 2015
    clacy said:

    Obviously not surprising now, but I would be surprised if they haven't raised by December.

    I'm still thinking it winds up being next year, if that. Inflation is not where they want it, China is not in good shape and other cracks showing.

    UPS earnings call:

    CEO Abney: “But to get to the economy, recent economic news has just been mixed and it’s caused us to be cautious. The continued strength of the U.S. dollar and I think this impending rate hike by the Fed appears to be holding back some U.S. growth.”

    Chief Financial Officer Richard Peretz: “The U.S. domestic business is on track with its revenue management and efficiency gains. However, we are seeing some softening in the economy.

    Chief Commercial Officer Alan Gershenhorn: “We’re about where we thought we would be. [But] we think the economy was certainly slower for sure.”

    http://www.marketwatch.com/story/ups-fires-warning-shot-across-the-bow-of-the-stock-market-and-the-fed-2015-07-28

    ---

    Now, I'm not saying that things are falling apart or going to. But I am increasing positions in things like Ecolab (ECL), which is now a very large holding and continues to be a favorite example of "buy and forget".

    I do not think that Yellen has forever to raise rates - I think there is a point the window to raise rates will have closed. Some think the window has already closed.
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