By Richard Russell
With the collapse in oil and gas prices, American consumers saw their expenses going down. Seeing the extra money in the hands of consumers, the Fed clapped its hands. Then came the shocker. Consumers defied the Fed’s expectations. Instead of spending the extra money, as the Fed fervently hoped, consumers saved the money. Thus the collapse in energy and gas prices has yet to stimulate the US economy. With this setback in the economy, the odds of the Fed increasing interest rates has been put off until 2016 and maybe even further.
With rising interest rates out of the way, the stock market celebrated, with the benchmark S&P hitting a new record high and the Dow climbing further above 18,000 to within 50 points of a new record high. Transports rose in harmony with the Dow, and as I’m writing, 45 minutes before the close, Transports are up 81 and safely above the ... Log in or subscribe to continue reading.