The US economy is too fragile to withstand an interest rate increase and still stay on the right path. The Fed didn't say that today, but that's the gist of why they, unsurprisingly, opted not to increase rates this month. Still, they expect two more rate hikes before the year is over - assuming, we all suppose, the economy doesn't tank beforehand.
The prospect of continuing lower rates in the US put pressure on the dollar, pressure which could reverse if Britain votes to opt out of the EU next week. Currently, Treasury rates are the lowest they've been in 3 1/2 years, while worldwide the trend towards negative-yield bonds marches on. This troubles such bond gurus as Bill Gross and Jeff Gundlach, who posted this graph today and fear that central banks are losing their ability to control economies and prevent financial disasters.
Crude oil prices scored their 5th consecutive day of ... Log in or subscribe to continue reading.
Premium Content Notification
A subscription is necessary to access premium content.
Please use the button below to subscribe in order to access all premium articles