By Richard Russell
Investor's Business Daily headline, 7/31/15: "Fed Rate Hike Probability in September Increases to 50%."
From every side, it appears that the Fed is more than anxious to raise the federal funds rate. This is based on the Fed’s perception that the economy is rosy and growing stronger.
However another Investor's Business Daily headline from the same issue states: “Worst Expansion Since WWII Gets Even Worse.”
According to John Williams, the US economy is slipping back into recession. In the face of this, the mistaken Fed plans to raise rates.
Turning to the stock market, I note that the Industrials are down 92 to 17,598. The Transports are up 25 to 8416. The Nasdaq is down 13 and only 115 points above the critical 5,000 level. Gold is down 9.3 to 1085.8, while silver is down 27 cents to 14.48.
Despite all the forecasts for a rate hike by the Fed, the Fed has so far refused to ... Log in or subscribe to continue reading.