CNBC: The Federal Reserve was never hiking rates four times this year. Investors didn’t believe it, and now Fed Chair Janet Yellen has all but explicitly acknowledged it.
Indeed, Yellen‘s blockbuster speech Tuesday assuring that the central bank would go slowly on future adjustments to monetary policy only caught some of the market by surprise. Others realized there was virtually no chance of a hawkish Fed in 2016.
“Central bankers at the Fed bark but they won’t bite,” Peter Schiff.
Opinion: The economy is built on counterfeit money. Let that sink in for a moment…
The Federal Reserve borrowed/printed $4 trillion dollars that was used to buy mortgage bonds from major banks. The banks, flush with cash, bought stocks and bonds and wham-o, Batman, the third biggest bull market in history and the first bull market built on bull p..p was born.
The only way the Fed will raise interest rates is if/when foreign banks stop buying US Treasury bonds because the rate of return is not worth the risk. That happened before under Jimmy Carter when interest rates were as high as 22%.
Then, there is the matter of the $200-250 billion that the US pays to finance the $19 trillion in national debt. A rise in interest rates would further bankrupt the nation.