Fed Cries Wolf--Again!

"Not yet," says the Fed.  "In December...maybe."  

  The U.S. Federal Reserve kept interest rates unchanged on Wednesday, but downplayed global economic headwinds and left the door open to tightening monetary policy at its next meeting in December. The Fed's policy-setting committee also noted that U.S. job growth had slowed and the unemployment rate had held steady. Most Fed policymakers have said they expect to raise rates in 2015, but. . .   

  Place your bets, folks!  The Fed said at the end of 2014 that it would finally raise the Fed Funds rate from it's near zero percent rate sometime in 2015.  The committee dealing with the problem meets once more this year...in December. Don't be surprised to hear at the end of the December meeting, "We're almost there!  Really and truly.  But not quite.  Prospects for an interest irate increase are very strong and we'll undoubtedly raise the Fed Funds rate very early in 2016.  (Unless we don't!) 

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