Yellen is trying to reassure markets not to anticipate much in the way of additional tightening and in fact I do not think this is the beginning of the hiking cycle. I think this is the end of it. Normally when the Federal Reserve behind to raise interest rates they do it early in the recovery when the economy has a lot of upper momentum. But the Federal Reserve has waited so long that this recovery is almost over. The recession is about to begin. I think there is a good chance it is already hereof will begin early in 2016.
I think the only reason the Fed is raising rates is to try to show they have confidence in the economy but the reality is that they are trying to cover up fears with this symbolic rate hike. I think they will be doing QE4 next year, they will not raise rates again.
Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.
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