China’s economy isn’t responsible for the turmoil in the markets, the U.S. Federal Reserve is
No one should expect that the stock market selling is over. The correction may soon morph into a full-fledged bear market if the Fed makes good on its supposed intentions to raise interest rates this year. Have no illusions, while most market observers are quick to blame the sell-off on China, this market was given life by the Fed, and the Fed is the only force that will keep it alive.
The Dow has now blown through the lows from October 2014, when fears over life without quantitative easing and zero per cent interest rates had caused the markets to pull back about 5 per cent. Back then when market fear began spreading, St. Louis Fed President James Bullard publically issued a few choice words which reassured the markets that the Fed stood ready to reignite the QE engines if the economy really needed a fresh dose of stimulus. By the end of the year the Dow had rallied 10 per cent.
The post The Fed spooks: Don’t blame China for global market turmoil — it’s the Fed’s fault appeared first on Trunews:.
from Trunews: http://ift.tt/1PDpxHd
via IFTTT
No comments:
Post a Comment