The Fed’s interest rate conundrum

alasdair_macleodAlasdair Macleod, GoldMoney – Wealth, Released on 9/1/16

Two weeks ago I pointed out that the Fed is seemingly unaware of early signs of price inflation.

You can read the article here. The Fed is clearly ignoring the coincidental rise in USD LIBOR and the growth in bank lending, and is still prevaricating over interest rates, despite its full employment and price inflation conditions more or less being met.

My earlier article was an economic analysis. The purpose of this article is to point out other factors that impede a return to interest rate and monetary normality, and it concludes that a rise in US interest rates would probably be accompanied by more quantitative easing, perhaps on a discretionary basis.

Continue…

Alasdair Macleod is head of research for GoldMoney. He also runs FinanceAndEconomics.org, a website dedicated to sound money and demystifying finance and economics. He has a background as a stockbroker, banker and economist.

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