The Feds Interest rate policy is ridiculous
Adam Pike, News Editor
29 Oct 2015, 12:31 p.m.
The gold price fell 1% yesterday after the Federal Reserve decided against an interest rate rise. Short term interest rates in the U.S have been at 0% since December 2008. All we hear from the Fed is the economy is improving and a rate rise is just around the corner, however, the Fed has been saying this for 7 years.
The official line from the Fed is the U.S. economy is more isolated from wider global economic dangers than previously thought and as such a rate hike in December is a possibility.
Or is it the case the Fed can’t raise rates because the economy is shrinking, unemployment is rising and the economy could not function if business and consumers had to pay more interest on their debt.
Time will tell, however, more and more gold analysts are suggesting next time the economy hits the skids the Fed will be left with only two options. Either take rates negative or once again fire up the printing press.