Fed Chickens Out Again, Fails To Raise For 55th Consecutive Time

With a 54-0 record without a rate hike (better than Floyd Mayweather's), and 58 Economisseds expecting no change, 3 a half-pregnant 13bps hike, and 53 expecting a 25bps hike, The Fed was always going to break someone's heart today. Bond yields and the USD were tumbling into the decision, which appeared correct as The Fed chickened out again...

**FOMC: NO POLICY CHANGE, 0-0.25% TARGET 'REMAINS APPROPRIATE' **FOMC: GLOBAL ECON,FIN EVENTS 'MAY RESTRAIN ECON ACTIVITY' **FOMC: VOTE 9-1; LACKER DISSENTS, WANTED 25 BPS HIKE Given the "no hike", it is clear that, as we noted, Goldman is still in charge and Hilsy is still leaker-in-chief. All eyes now on the dot-plots as The Fed desperately tries to regain some credibility, stifle uncertainty, and calmly reassure markets that "we've got your back."

**FOMC LOWERS L-RUN EQUILIBRIUM FFR EST TO 3.5% V 3.8% JUNE **FOMC: 11 PARTICIPANTS SEE FFR BELOW 0.5% END 2015 VS 7 JUNE **FOMC: ECON WILL EXPAND MODERATE PACE W/ 'APPROPRIATE' ACCOM *FOMC: LABOR MKT IMPROVED,'SOLID' JOB GAINS, UNEMP DECLINING *FOMC: ONE PARTICIPANT SEES NEGATIVE FFR END-2015 & END-2016 *FED: MKT-BASED MEASURES OF INFLATION COMPENSATION MOVED LOWER

Continue...link http://www.zerohedge.com/news/2015-09-17/fed-chickens-out-again-fails-raise-55th-consecutive-time

Re:She must have known for months that the economy was too weak to allow interest rates to be raised. So why didn’t she tell us that?

That may or may not be true. IMHO, It is possible that her decision - which may not have been entirely "her decision" - was not finalized until the last minute. She herself hinted that it was the policymakers decision.

Another thing that such low interest rates have done besides hurting banks is to manipulate people who keep their money in CD's, Treasuries, and other low-risk savings accounts into riskier investments.

The reality of investing in a low-interest-rate environment has apparently not sunk in for many younger, low-information investors who are presently borrowing much more than they save.

To understand their future all they need is to use their imaginations and do a little math by taking their imaginary future financial assets and multiplying by 2.4 percent, which was the 2014 yield on a U.S. 10-year Treasury bond.

If they have $100,000 saved, and the rates remain about the same, give or take a percent, they would have about $200 per month to live on before taxes and inflation. The $64,000.00 question is "Could they live off their savings?"

Unfortunately, many retirees who depend upon the income from their savings for "roof-over-their-head" money have found it necessary to accept more risk ( i.e. investing in stocks ) at a time when they probably won't have as many years to recoup any losses they may incur.

The infuriating thing is that there are experts who are saying that there is nothing that would indicate that the policy of the current administration of lowering interest rates was beneficial to our economy. For example, our own era of low interest rates has failed to generate the expected growth which was supposed to "magically" occur as a result of this policy!!! <

Lower rates have merely transferred wealth from savers to borrowers. Savers paid the interest on their loans. Talk about Marxist redistribution of wealth on steroids!!!

The “real” canary in the coal mind will be Japan! It has been able to pull off this scheme (through endless QEs- they invented it) and see that their interest rates have not gone up, significantly, in nearly 25 years! I do believe the end game is near in that the FED will finally be exposed ,as the fraud they are, when the Dollar eventually tanks due to an alternative. The only reason it’s held up (relatively speaking) is because EVERYONE else has been racing to the bottom in devaluing their own fiat currencies! Keep your eye on the JP 10yr (see link below) currently yielding a pitiful 0.36%! Yes, Japan with a 240% debt to GDP ratio and with an even BIGGER QE scam than ours has their 10 year bonds yielding 0.36%! If, and when you see this spike (sic) to over 1% you’ll then watch the Nikkei tank by 5%- then you’ll know the jig is finally up with this Keynesian Madness! BTW- about 90% of the Republicans are NOW Keynesians! The Democrats are simply 50% Socialist/50% Marxist (iBTW- they’re not one and the same)!

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=BX%3ATMBMKJP-10Y&insttype=Bond

Absolutely right! BTW- whatever happened to that “Audit The Fed” Bill in the Senate and the Congress??? It disheartens me to see that in the past two debates (with 25 MILLION people watching) there wasn’t a push by ALL the candidates to push for an audit of the Fed. In the end, an audit isn’t an end all, but just like the illegal immigration issue- it would have, for the first time, expose the SCAM of the Federal Reserve to the 99% of the population that doesn’t “get it”! The reason you’re incomes and standard of living is NOT going anywhere is because the country is in TOO MUCH DEBT! The biggest debtor is the U.S. Gov’t. The US Gov’t can keep taking on new mountains of Debt because of the Federal Reserve! I mean come on RINOS....help the people “connect the dots”!!

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