Completely boxed in. As in screwed. Raising rates at this point would be like shooting a dying pig. Not raising rates now will be like sitting back and watching the pig suffer, choke, and die.
Also, it’s hilarious to hear the panic-zombies on the business channels talking about what NEEDS to be done. Pull up a 5 year chart of any index. This “pullback” is insignificant and nothing else other than LONG overdue.
With every 1 percent increase in rates, the deficit grows by $184 billion. The UniParty trembles at the thought.
The government loves to ignore problems for as long as possible. Kick that can down the road. So which option in your scenario is the kick-the-can one? It's the second one.
That's why I will fearless continue to predict no rate hike in 2015.