Meraglim Blog

Fed Shows No Signs of Stopping Rate Hikes. Markets Have Other Ideas

Facebook
Twitter
LinkedIn

 

The recent Federal Open Market Committee (FOMC) meeting of Federal Reserve officials made it clear that the Fed is determined to stay on its course of raising rates until the official policy rate reaches 4% in early 2020.

As this article shows, the Fed continues to see strong growth and expects inflation, based on the lowest unemployment rate in almost 50 years. But these views are highly misleading.

The real reason for Fed rate hikes is to prepare for a new recession. Research shows that it takes about 4% in rate cuts to pull the U.S. out of a recession.

How do you cut 4% when rates are only 2.25% (the current level)? The answer is you can’t.

If a recession started today and the Fed cut rates to zero, it wouldn’t be enough to stop the recession. The Fed would have to return to quantitative easing, or “QE,” which it used from 2008–2015. In order to avoid that, the Fed is raising rates 0.25% every March, June, September and December until it reaches its 4% goal.

Growth is already slowing and the unemployment rate is misleading because it does not include the 10 million able-bodied workers who are not in the labor force. The conundrum for the Fed is what happens if the U.S. hits a recession before the Fed hits its 4% goal, a highly likely outcome?

At that point, the Fed will have to pause in its rate hike cycle. The market sees this coming, but the Fed does not. As usual, the Fed will be the last to know.

Institutional investors can schedule a proof of concept with the world’s first predictive data analytics firm combining human and artificial intelligence with complexity science. Check out Jim Rickard’s company at Meraglim Holdings to learn more.

 

QCI and Meraglim Join Forces to Deliver Capital Markets Risk Analysis Powered by QCI’s Mukai Quantum Computing Software Platform

LEESBURG, VA, December 1, 2020 – Quantum Computing Inc.(OTCQB: QUBT) (QCI), the technology leader in quantum-readysoftware development and execution, and the only public pure play in quantum computing, has partnered with Meraglim Holdings Corporation to deliver advanced capital market risk analysis powered by QCI’s performance-leading Mukai™ quantum software development and execution platform. As an industry leader in predictive analytics, Meraglim was the first

Read More »

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »
Scroll to Top