Losing credibility: Federal Reserve says no rate hike again


“The markets continue to get ready and expect a rate hike, and it's never there.”

- Peter Schiff

 

The Federal Reserve has once again decided to kick the can down the road and prolong the discussion of any interest rate hike. They have failed to raise the interest rates many times over, even though they have continuously mentioned the possible intention of doing so. However, now they say that this December they are really serious about the possibility of a rate hike this time around. Yet, if the markets couldn't handle a rate hike now, it's not clear how they'd be able to handle it only a few weeks from now. But that's what the Federal Reserve wants the public to believe. 

 

"In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress- both realized and expected - toward its objectives of maximum employment and 2 percent inflation," said the Fed in a statement released after its recent two-day policy meeting. 
 

Many mainstream financial experts are now buying into the possibility that the Fed will consider a rate hike in December, just like they've bought into the possibility of them raising it every other time that they have suggested making the move to do so. However, the truth is that the economy isn't strong enough to handle an interest rate hike, and they only further prove this every time they prolong the decision to make the turnaround. Not everyone has been buying the Fed's empty promises though, few market and financial experts like Peter Schiff, Jeff Berwick, Gerald Celente, and others, have been working to voice their concerns over their belief that the Fed won't raise rates, and about the risks posed by them not doing just that. 

 




When it comes to those who quickly buy into the promises from the Fed over a possible rate hike, financial veteran Peter Schiff says that “they still don't understand the game,” and when it comes to the market “nothing has changed,” that would warrant a rate hike. “The Fed has to pretend that a rate hike is right around the corner so that they can pretend that the recovery is real,” says Schiff. Some, like Schiff and others, predict that another round of quantitative easing is likely coming in the future (QE4), because of the fact that the market is weak and most likely couldn't handle an interest rate increase. However, along with another round of QE, Schiff suggests that the Fed will lose a vast amount of credibility from the mainstream.

 

“In the U.S. corporate profits are down and economic growth remains non-existent no matter what the government numbers say,” warns Jeff Berwick. He himself predicted over 7 years ago that the Federal Reserve would never raise interest rates again; and so far he's been right. There are also rumors of the possibility of negative interest rates or a tax on cash, a move that would help to usher in the agenda for a cashless society, something which we see many nations already working toward.

 

 

If you haven't yet, take the time to check our video The Truth about our Cashless Society Future:

 

 pressfortruth.ca

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