So the results are in: the Federal Reserve decided to keep interest rates at around zero, delaying any increase in its target for at least six more weeks.
The move did not come as a surprise to Wall Street—which was betting 3-to-1 against the hike. But that’s not because investors didn’t think the U.S. economy was ready for a rate “liftoff.” Rather, it shows that markets did not believe the Fed has the will and power to raise rates for the first time since June 2006.
Unfortunately, they guessed right.
The economy is ready if not eager for a liftoff and a return to a normal rate environment. Investors and businesses know this. It’s time the Fed recognized this too.
The economy is ready if not eager for a liftoff and a return to a normal rate environment. Investors and businesses know this. It's time the Fed recognized this too.
