2015-09-12 00:00
I'm not sure how Bill Evans, chief economist at
Westpac and one of the very, very few who nailed the date of the first
Reserve Bank of Australia rate cut this year, will feel about the
headline to an interesting piece here in Australia: Weekend Economist:
Get ready for Fed lift-offThat headline, to me, reads like they think Mr
Evans is a bit of a 'weekend economist'! Which is unfair.Anyway ...The
gist of the article:He expects the Fed to hike next week, not wait until
December And that "The market is not prepared for this historic
event"On the September vs. December question:Markets are more confident
that the Fed will wait until December on the basis that the Fed
surprised by delaying the decision to taper QE to December when the
scene was set for September.I think Fed authorities might see that
decision as, in hindsight, adding unnecessary uncertainty to the market
and forcing a major policy change into a time of limited market
liquidity.More at the article here
