Jeffrey Gundlach is speculating that the Fed might not raise rates next week because the markets are failing and the economy is weakening.
While I tend to agree with him on the economy, and am revolted by those leaning so heavily on the unemployment percentage while ignoring so much other data, as noted in this intraday posting, I do not think the Fed can stand pat next week and do nothing, and retain any shred of their tattered credibility.
The Fed was never acting on rates because of a robust recovery. We have an elite recovery while the broader public stagnates and the middle class, or what is left of it, hangs on by their fingernails.
The Fed will most likely raise rates, and they will do so in order to provide themselves some policy maneuvering room to cut rates when their latest financial asset bubble starts to collapse.
And if the Fed does not raise rates, which is possible, what will the market think? What will you think? See the Fed's problem? They have painted themselves into a credibility corner.
I have included the latest economic figures from this week. And this is a recovery?
Let's see how we end the week, and look forward to the FOMC rate decision and big quad witch option expiration for stocks on Friday the 18th next week.
Have a pleasant evening.