Ok, if you ask me, a fairly decent college educated American living in Singapore what is going on with the Fed, I will tell you that in my humble opinion they are in a holding pattern. Holding pattern meaning most likely I simply believe they are buying time until the IMF can announce China’s inclusion into the SDR. In addition, perhaps the addition of gold into the SDR as well. They need a scapegoat, and let us all hope that scapegoat is not war.
With that said, perhaps it does not matter if they do or do not raise rates because if they do it will be short-lived. The bigger point should be what will happen in a few months when the dollar has to potentially give up it’s majority share of the SDR? Raising interest rates .25% or whatever they plan simply will not matter in a few months when the bigger impact in the near future most likely will be China’s inclusion into the SDR.
It seems to me the Fed is on autopilot until the changes from the IMF and the SDR come into play. That’s when the Fed can then wash their hands from all that they have been unscrupulously doing. We are so focused on what the Fed says today, that I believe we are losing sight of what may really be coming down the road tomorrow.
If Ben Bernanke and Janet Yellen were sitting next to me on a bench I’d tell them “stupid is as stupid does… that’s all I have to say about that.”