Suzanimal
08-18-2015, 06:28 AM
H/T to Lew Rockwell at LRC
Says Ron: the Fed may not dare to raise rates, because “everything is vulnerable.”
https://www.lewrockwell.com/lrc-blog/great-to-see-ron-paul-on-drudge/
Video at link. Sorry, I couldn't embed or find a tube.
China's move to devalue its currency roiled the markets last week, and stoked new fears about the health of the world's third largest economy.
However, according to former Rep. Ron Paul, the move may have given Federal Reserve Chair Janet Yellen the cover she needs to not raise rates later this year, as many market participants expect.
"She's going to be more hesitant to raise rates because she sees how fragile the global economy is," Paul told CNBC's "Futures Now" on Thursday.
"She's under the gun," he added. "I could be wrong, but I don't think they are going to raise interest rates."
According to the former Republican presidential candidate, a rapidly slowing Chinese economy adds just another headwind for an already struggling U.S. economy.
"I think there's going to be enough problems existing, whether it's the Chinese precipitating some crisis, or whether it's our economy breaking down," he said.
Currently, markets expect the Fed will begin tightening monetary policy at its meeting in September. Gauges like closely watched fed fund futures contracts are pricing in a 45 percent chance of a September rate hike, while other analysts see the odds as higher.
Yet institutions like the International Monetary Fund have warned that a rate hike might imperil a fragile global recovery. In June, the IMF's deputy director warned about potential risks of a Fed tightening.
...
http://www.cnbc.com/2015/08/16/ron-paul-fed-may-not-hike-because-everything-is-vulnerable.html
Says Ron: the Fed may not dare to raise rates, because “everything is vulnerable.”
https://www.lewrockwell.com/lrc-blog/great-to-see-ron-paul-on-drudge/
Video at link. Sorry, I couldn't embed or find a tube.
China's move to devalue its currency roiled the markets last week, and stoked new fears about the health of the world's third largest economy.
However, according to former Rep. Ron Paul, the move may have given Federal Reserve Chair Janet Yellen the cover she needs to not raise rates later this year, as many market participants expect.
"She's going to be more hesitant to raise rates because she sees how fragile the global economy is," Paul told CNBC's "Futures Now" on Thursday.
"She's under the gun," he added. "I could be wrong, but I don't think they are going to raise interest rates."
According to the former Republican presidential candidate, a rapidly slowing Chinese economy adds just another headwind for an already struggling U.S. economy.
"I think there's going to be enough problems existing, whether it's the Chinese precipitating some crisis, or whether it's our economy breaking down," he said.
Currently, markets expect the Fed will begin tightening monetary policy at its meeting in September. Gauges like closely watched fed fund futures contracts are pricing in a 45 percent chance of a September rate hike, while other analysts see the odds as higher.
Yet institutions like the International Monetary Fund have warned that a rate hike might imperil a fragile global recovery. In June, the IMF's deputy director warned about potential risks of a Fed tightening.
...
http://www.cnbc.com/2015/08/16/ron-paul-fed-may-not-hike-because-everything-is-vulnerable.html