U. S. stocks rallied on Wednesday after the Federal Reserve suggested a less aggressive timeline for raising interest rates even as it opened the door for the first hike in almost a decade. The Fed has come under lobbying from other countries not to raise rates. The Fed will comply for now, but when the Dow breaks out over the 20,000 level, the Fed will start to abandon international policy objectives shifting to domestic. The Fed NEEDS to raise rates for unless they do, they realize they have no room to lower rates for a stimulus in the future. The stocks rallied on the traditional view of interest rates and that will dominate the trend until after the ECM turns.
This post was published at Armstrong Economics on March 19, 2015.
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