The Fed surprised again the market.
Again I think we could be near Quantitative Easing 4 specially if the market reacts badly (which is possible…the massage is …the US economy is not so good). What surprised me is that in the dot chart of future pattern of the interest rate there is now some red dots…negative interest rates like in Germany (so QE4).
With the US debt at over usd $210 trillion it is not surprising that the Fed cannot lift too much the rates.
Also the probability of a Fed hike in December dropped from 65% to 45%. 2016 anyone?
As I was saying previously…too many people were long USD. And I do stand by my market base 1830 (depending on panic levels) before mid October (then rally..the Yellen Put will save us).
investorpolitico 