I have a hard time imagining a world next summer in which the Fed is sorry that it did not raise interest rates today. But I have an easy time imagining a world next summer in which the Fed is sorry that it did raise interest rates. So I'm having a hard time understanding their thinking.Barry Ritholz sees signs indicating possibilities for the "sorry it did raise"-scenario. Under the headline "Double Squeeze: Between a Rock and a Hard Place" he quotes a commentator as saying:
"for the first time in 3 years, there are no government tax cuts, no checks, no other one-off items to spur the economy forward. The refinance afterburner has flamed out, and the Fed is raising rates."That's a bearish one (three) liner when it comes to the prosperity of the economy and the business cycle development, and quite bullish for bond-prices. Prices which by the way actually strengthened on the FOMC announcement.
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