The FED is terrified.
Considering recent stock market performance it is now becoming apparent what they have done. With global debt now at $233 Trillion and with the stock market in a runaway bubble, it is only a matter of time before everything blows sky high.
Consider the following……
The Fed says it could speed up rate hikes because of Trump’s tax cuts
- The Federal Reserve debated the impact of tax reform on the economy and on how it sets interest rates, minutes of the December meeting showed.
- Most Fed officials favor gradual rate increases. However, some noted that the economy could be about to get a boost from tax cuts, which would necessitate faster rate hikes.
- The Fed expects to raise rates three times in 2018.
I would suggest their desire to increase rates faster has nothing to do with Trump’s tax cut boost and everything to do with the Shiller’s Adjusted S&P P/E Ratio being at a record high of 33. That’s 3-5 full points higher than both 1929 and 2007 record readings.
Will the FED be able to successfully slow down this runaway train without triggering some sort of a recession?
Sure, just as they did at 2000 and 2007 peaks.
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