It seems that the employment data knocked the stuffing out of the FEDs looming rates rise in ten days time. The pundits say that the economy isn't strong enough to weather .5% and perhaps data should be consistent with core inflation at 2% (probably years away).
The rate rise last December has been absorbed and it looks as though it hasn't been responsible for any negative economic reaction. So I wonder why not? Why shouldn't the FED get in another .25% when they're on a roll.
For certain the FED wants to raise rates this year and the only real opportunities are this and next months meetings. Obviously if they wait till next month there will inevitably be good and bad economic news so why wait?
Another important yet overlooked reason is that, as these rises will have little or no impact on the economy, the FED will have it's monetary policy tool back. A nice bit of fallback should a part of the US economy pull the US toward recession in the very near future. Either that or NIRP.
