Posted on 06/24/2016 5:34:39 AM PDT by mykroar
The U.S. Federal Reserve, already undecided on when next to raise interest rates, now has one more reason to wait: Britain's vote on Thursday to leave the European Union.
Not that the Fed needed another reason.
Weaker-than-expected growth in U.S. jobs in recent months had already forced U.S. central bankers to put off a rate hike at their meeting last week.
But while data due early next month on June U.S. payrolls growth could help clear up doubts about the strength of the labor market, the political and economic consequences of Britain's exit from the EU will take months or years to unfold.
Financial markets have already spoken, emphatically, in the hours since the 'leave' outcome in the so-called Brexit referendum became evident. U.S. equity index futures plunged and investors rushed for the safety of U.S. Treasurys, pushing the yield on the benchmark 10-year note below 1.5 percent, nearly a four-year low. The dollar rose by more than 3 percent at one stage, the most in a day since 1978.
Interest rate futures markets rallied so hard that they have erased any probability of an increase in the Fed's benchmark overnight lending rate for both this year and next. In fact, they are pricing a possibility that the federal funds target rate may be lower in December than it is now, which is around 0.38 percent on average.
"It adds weight to the camp that the Fed would be on hold. A July (hike) is definitely off the table," Mike Baele, managing director with the private client reserve group at U.S. Bank in Portland, Oregon, said of the latest Brexit results.
(Excerpt) Read more at cnbc.com ...
Was never going to happen anyway. Not before the election.
Another excuse to keep patching the O’conomy together until Jug-Ears Hussein is out of office.
That way the media can spin it so the impact of the correction for years of bad policy can be blamed on Trump.
Any event at all will put off a rate hike. A rate hike after pumping out dollars so prolifically and for so long will bring on the inevitable disaster quickly. The fact that the sooner it happens the less severe it will be doesn’t change things. The disaster will cost the bankers and established politicians a lot whenever it happens and will ruin enough of them that it is final for them however severe it may be so the best for them is to put it off as long as possible. For them there is no difference between a storm surge and a tsunami.
There was never going to be a rate hike anyway.
I don’t get why this should affect the Fed, except to provide an excuse for continued lax policy in the face of continued poor economic numbers. Britain voted for Brexit, but it isn’t going to be immediate. It will take years.
So, I think all of the market and central banking fuss over this is overdone.
U.S. durable goods data 4 times worse than expected this morning
The basic premise of the article (and all MSM coverage of the Fed) is based on one simple false premise—that the Federal Reserve acts based on the interests of the American people.
It does not.
It is a private institution that serves the interests of its Board of Directors.
I leave as an exercise for the reader—look up the private institutions that rule the Fed.
Metals Date Time
(EST) Bid Ask Change Low High
GOLD 06/24/2016 08:39 1322.40 1323.40
+66.10
+5.26%
1319.80 1326.10
SILVER 06/24/2016 08:39 17.89 17.99
+0.65
+3.77%
17.81 18.04
PLATINUM 06/24/2016 08:39 986.00 991.00
+21.00
+2.18%
978.00 992.00
PALLADIUM 06/24/2016 08:37 549.00 554.00
-15.00
-2.66%
544.00 556.00
RHODIUM 06/23/2016 18:00 640.00 740.00
0.00
0.00%
Yep - they know there is no painless way out of the current pickle and will do everything they can to protect Obama - and now Hillary can blame it on the Brits....
GO TRUMP!!!
Obama will do his best to tank the market following the Brexit vote.
There was never going to be a Fed hike. Everyone knew that.
The emperor has no clothes. It is going to get very ugly what a couple of talking heads finally acknowledge that.
“There was never going to be a rate hike anyway.”
Exactly,
Any headline the FED can use to pretend otherwise is a keeper for them,
Many said 8 years ago the Fed will never normalize interest rates again.
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