It took less than two days last week for the financial markets to disabuse themselves of the notion that the Federal Reserve, this time, is really, truly, absolutely kind of serious about raising interest rates at its next meeting in September.
On Wednesday afternoon the Fed, as expected, left interest rates unchanged for the fifth straight monetary policy meeting since first raising rates last December, which was supposed to usher in a gradual process of rate “normalization” this year. As we know, of course, the Fed hasn’t followed through on that, finding one justification after another – rising oil prices, falling oil prices, weak Chinese economic growth, weak U.S. economic growth, Brexit, you name it – to delay the day of reckoning.
In last week’s post-meeting announcement, the Fed dropped several hints that might cause some people, even reasonable ones, to conclude that a rate increase might be in the offing at its next meeting in September. Continue reading "Will We See The Fed In September?"