As we’ve said China is driving things economically right now. The Federal Reserve doesn’t want to say it. It wants everyone to think that though our boat is leaking it is unlikely to leak as much as the rest of the the world’s economic “boats.” And right now that may be true. But we are still taking on water. The Great Economic Experiment post 2008 is failing, as many of the more market oriented have long predicted, and now the American central bank has very few options.
(From The Business Insider)
And following this news, Chris Rupkey, chief financial economist at MUFG and one of the most bullish strategists on Wall Street, has thrown in the towel on the Fed raising rates in 2015 — and maybe ever — while also tossing out the idea that the US economy can be the engine that powers a faltering world economy.
In an email blast following Friday’s report, Rupkey wrote that “rates will never go up again.”
“The jobs market struck out in September as far as the Fed’s concerned,” Rupkey wrote on Friday. “No rate hike in October now certainly, and 2015 looks increasingly impossible. If the Committee was looking for more improvement this isn’t it.”
All we can say is, be aware of economic developments. Trump and the immediate issue of the day may get the biggest headlines, but the current global economic slowdown is most likely the most important current story for you and your family. Better to be abreast of these developments than be caught flat footed.