This week shapes up as one which could go down in the history books! Markets last week were tumultuous from weak equities, illiquid credit markets, FOREX markets in disarray and commodities hitting the skids …yet the Federal Reserve is intent on hiking rates? Have they taken this position because the markets are strong? Or because the economy …anywhere on the planet is overheating?
Before looking at “this week”, I have seen it said by many, “the Fed must raise rates to have any credibility left”. This is true to an extent but there is one core reason and one of their own making. You see, the fake data and outright lies have been coming out of Washington in such regularity and magnitude the Fed has been painted into a corner. They either raise rates “because things are so good” or they don’t …as a sign things aren’t so good. It has been for this reason I have had an eye out looking for some manufactured (false flag) event that takes the Fed off the hook. Time is getting short prior to Wednesday’s meeting and announcement …but there still is time.