While most market pundits expect the US Economy to accelerate growth due to “anticipated” increase in CAPEX, hiring or whatever other nonsense they believe in, even the IMF is not buying it. IMF Cuts U.S. Growth Forecast, Sees Greater Scope for Zero Rates
The International Monetary Fund cut its growth forecast for the U.S. economy this year and said theFederal Reserve may have scope to keep interest rates at zero for longer than investors expect
This has been my view for quite some time now. As our stock market mathematical and timing work clearly shows, the US Economy will be in a server recession by this time next year. That means that any and all tightening proposed by the FED will go out of the window. Instead, the FED will be looking re-inflate the economy/market through all means necessary. That means putting all interest rate increases on hold and possibly re-accelerating QE.
In short, expect interest rates to stay low for at least a few more years. This is further confirmed by our technical 10-Year Note view and it’s likely retest of the 1.5-1.6% range(double bottom in yields).
