Was FED right to raise Interest Rate under current market Situation?
What Federal Reserve did today was little shocking for the market and for me too. It’s OK to increase the rate, which was a foregone conclusion. My concern is not about FED raising .25% interest rate. However, statement made by fed chair was very concerning. I may not be competent to judge his ability but that’s just my personal thoughts. Why do I say this? The reason is, market across the globe are already in deep trouble, China, Japan, Europe is a mess and U.S. market never saw the volatility of current magnitude, what I can recall in last couple of decades. There is no doubt in my mind that economy is strong - jobs, wages, retail sales, consumer confidence and so on. There are also significant issues surrounding the market, such as, trade war, Europe political mess, low gas price, subdued home market, volatile capital market. The people are spending thinking they have Job, income, stock market is booming and so on. Once market starts falling deeper and deeper,...