Zero percent forever!

A few years back, we started the sarcastic, tongue-in-cheek mantra that “they will never raise rates unless the market makes them!” They have not let us down. In spite of pundits continually telling us when rates will go up, in spite of the fed constantly teasing, nothing ever happens. We have not had a rate hike in over 9 years with rates at 0% for 7 years.

We do ask the question…just what the heck are they afraid of. After all, we keep hearing others saying they shouldn’t. We keep hearing from Janet that the economy needs to be supported. So we scratch our head that raising rates from just 0% to 1/4% could possibly be a problem.  We scratch our heads on what they can possibly be thinking. Are they that afraid of a 1/4% hike to only 1/4%?

Futures up decently this morning but again MARKETS REMAIN RANGE-BOUND. We will keep using those words until something changes.  The only thing sticking out for us is that the euro looks higher as markets recognize there will be no rate hike…which in turn should get gold prices moving higher as well as other commodities. This is just near term stuff. We will advise if we think the move is of more consequence.