Hello readers and all,
In the next 8 days, I won’t be posting any articles as I get ready for my finals at Baruch College. I understand last week’s events (jobs reports, ECB, etc) are important and I plan to write about them. I also understand the Fed will be meeting next week. I will be writing about all of them after I’m done with the finals.
I just wanted to give a quick summary of what I think. I believe there’s a lot of risks for a rate-hike. Suchs risks include, lack of liquidity due to regulations, widening divergence between the Fed and many other central banks (ECB, BoJ, etc), junk bonds, and more. I will post an article about the risks.
I believe the Fed will raise rates by 0.10%, instead of 0.25%. Current probability of 25 basis points rate-hike stands above 80%. Thus, the Fed has to raise rates or they will lose their credibility. I believe 0.25% is too risky and 0.25% increase will backfire on them as I believe there are too much of risks.
I’m always on Twitter. You can tweet me your questions, comments, etc and I will respond within 24 hours. If you would like to discuss the financial news with me, feel free to contact me privately. Thank you.
