Quantitative Easing? Looks like it’s here to stay.
The Federal reserve left rates unchanged, for now.
The Fed opened the door for a rate cut. 6 days ago I said that if the Fed will cut rates it might be a bad sign for the economy and if we are not in 1995, then the markets should get hit and fall.
Every time, and yes every time the Fed raised rates and had to cut them back it meant something bad is going on, and people were sleeping at wheel. For now, even the Fed is showing signs of hesitations about the recent economic developments.
Putting things into context, we are heading into the longest recovery in U.S history. People are thinking that we might be going into a 20 years cycle without a recession like in Australia, but it might not be so because the economies are not quite the same.
Or worse, some market participants think that this time is different and growth could last forever.
A positive catalyst for the markets might be a deal with China.
Let’s see what will happen... it’s a very interesting environment.