It has been 7 years to the day since the Fed slashed US interest rates to 0. Since then, unemployment peaked at 10.2% in October, 2009. Ben Bernanke said to even consider raising interest rates, the threshold unemployment number had to be a minimum of 6.5%. US unemployment is now holding at 5% which was the pre-recession number. Will Janet Yellen find enough reason to raise interest interest rates at the December 16th meeting?
The Nasdaq Market Intelligence Desk recently hosted a web seminar discussing the upcoming FOMC meeting. Topics covered centered around potential policy changes that may come from the December 16th meeting. Michael Block, Chief Strategist for Rhino Partners was our featured speaker on the web seminar. Specifically, he focused on the impacts this may have on trading activity & markets both domestically and globally. Block stated that the Fed has painted itself into a corner and will probably raise rates 25 BPS next week. However, he argues that this may not the wisest decision.
Additionally, Michael Block (@MBlockRhino) offered his five reasons why the Fed shouldn’t raise rates next week:
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