Fed To Hike Interest Rate in December?
Q : But under those circumstances, assuming that the Fed hikes interest rate by 25 basis points, how much leeway does it have to increase the rate beyond that?
Marc Faber : My view is that the U.S economy has been slowing down over the last 12 months and corporate profits have been coming down, and so it’s not a good time to increase interest rate. On the other hand, the Fed lowered the rate to almost zero in December 2008. So in December 2016, in eight years, at zero interest rates, the economy must be stinking if you can’t increase interest rates during eight years of an expansion so something is wrong. So my view is that they should have already increased it in 2011 and they should increase it now.
I think on balance, zero interest rate – and now there are many voices that propose negative interest rate – is rather negative for the economy. - in Bloomberg Quint
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.Dr. Doom also trades currencies and commodity futures like Gold and Oil.
This is good for all traders and reliable for new investors. In time gold market has very fluctuated compare to silver. It fully depends on the economic condition of the market and its movements.
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