Will the Fed Hesitate? “Everything is Too Vulnerable” for Rate Change, Says Ron Paul
The system is teetering on edge, and nearly everyone in the financial sector is waiting for one decision – will the Fed finally raise rates?
Ron Paul has made a bold prediction that the Federal Reserve likely will NOT raise interest rates, something which would have enormous consequences in the market, because it is hesitant to do so with so many negative risk factors the market already faces.
Fed Chair Janet Yellen – and most in the financial sector – know how much is impinging upon the possible decision to raise rates after years and years of quantitative easing have pushed the limits of stimulating the economy. According toCNBC:
By Paul’s reasoning, the Fed is too scared to raise interest rates in the middle of an already weak recovery and risk sending the U.S. economy back into recession, or worse… The Fed chief “does not want to be responsible for the depression that I think we’ve been in the midst of all along,” Paul added. “Everything is vulnerable, so we’re living in very dangerous times,” Paul added.
The banks have basically become junkies to constant cheap money, and QE3 has gone so far over the edge and upside down that pensions, insurance policies and savers can no longer earn future value through basic investment.
But according to the former Congressman and presidential candidate, big trouble in China, or our own potential economic breakdown, may be enough to call off action by the Fed because bigger problems may prevail.
Ron Paul told CNBC:
She’s going to be more hesitant to raise rates because she sees how fragile the global economy is… I could be wrong, but I don’t think they are going to raise interest rates.”
“I think there’s going to be enough problems existing, whether it’s the Chinese precipitating some crisis, or whether it’s our economy breaking down,” he said.
Does this count as yet another prominent warning by experts that the U.S. economy is headed for another crash, and perhaps even a prolonged collapse?
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