I just finished listening to Chairwomen Yellen’s 30-minute speech regarding the possibility of future rate hikes.
Here are the KEY words I heard her share and WHY I still believe there will be no rate hikes this year:
- Cautiously optimistic
- Close watching
And also the salient point she made:
“And the UK Brexit vote could have significant economic consequences if they vote to leave the EU.” (The vote is June 23rd)
The craft she used to construct the speech is pretty interesting. It’s my belief that the only reason the majority of the Fed governors want a rate hike is to give them some room to cut rates in the future when the inevitable occurs.
I’ll leave it up to you to determine what the word “inevitable” means.
After all, if the chairwoman can have fun with words, why can’t I?
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