Look to China for clues on when the Fed will raise rates

[dancingshoes]

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When China pays down its reserves, it no longer diversifies its holdings — or in other words, sells dollars to move into other currencies. That practice weakens the dollar. So in recent years the euro has strengthened when China is piling up dollars, and fallen when it is not. Sales of dollars would weaken the euro, and also the already stretched emerging market currencies. And they would means higher yields on short-term US bonds, in which reserves are held. That, Deutsche says, could mean “quantitative tightening”. US yields would rise, doing a job otherwise done by the Fed.

The Fed is right to watch China — even if it perhaps scared the markets by saying it so clearly.

 

[virus]

The feds still continue with their lies. Got no balls to raise interest rates. Fark it. Just raise it and let the market crash.

 

[congo9]

The feds still continue with their lies. Got no balls to raise interest rates. Fark it. Just raise it and let the market crash.

China just devalue their currency. So to make itself more competitive.

US raise rates, borrowing cost will soar. Money become more expensive.

Will you want to raise the rates ? I don't think so.

 

[dancingshoes]

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“The Fed is right to be sensitive about raising rates too soon,” said Mr Smiles. “The single greatest risk to the world economy and markets is the unwinding of extraordinary monetary policy. The Fed cannot afford to make the hawkish mistake and send markets into a downward spin.”

 

[Cerebral]

China just devalue their currency. So to make itself more competitive.

US raise rates, borrowing cost will soar. Money become more expensive.

Will you want to raise the rates ? I don't think so.

China export sliding. They cannot afford to decouple from manufacturing/export growth yet

 

[zeebjii]

China just devalue their currency. So to make itself more competitive.

US raise rates, borrowing cost will soar. Money become more expensive.

Will you want to raise the rates ? I don't think so.

No need for in-depth analysis, or any analysis. They are scared shitless to raise. Will never happen, just as Greece will NEVER to allowed to leave the Eurozone. The German's hard stance and threats are pure wayang.

China is just an excuse, just as in june greece was used as an excuse not to raise rates. In december they will use whatever "is of concern' then as another excuse not to raise rates.