Keep keep on worrying

In Currencies, Economy on 18/09/2015 at 1:28 pm

So the Fed didn’t raise rates: Rather than looking simply at the domestic economy, the Fed is now taking notice of global developments. But that makes it harder for investors to assess which data to monitor and when the Fed will consider the global backdrop has improved. Further volatility is probably ahead.

The good news for mortgagees is that a weaker US$ against S$ may ease the pressure on interest rates. But don’t count on interest rates coming off significantly fast or soon. The trend for SIBOR etc is still upwards.

A hike is still on the table before the end of the year. Fed Chairwoman Janet Yellen said that was still the majority view of the Federal Open Market Committee members – the group responsible for setting US interest rates.

  1. No worries man! The first hike will be in Dec. After that no more hikes until at least next June. Financial markets will be volatile next 2-3 month, then will start to accelerate upwards into 2016. Much more good times ahead. But the crash after that will make 2008/2009 GFC look like a mickey mouse story.

    Unfortunately for Sinkie property market, will remain lackluster & moribund over next 3 years into 2018 due to ridiculous oversupply & market crash in 2016/2017. Even if PAPies open both asshole & vagina for 10 million foreigners, doubtful if got 10 million jobs. No jobs means no foreigners means no improvement in property demand. The weak global economy will also limit multi-billionaires from buying up overpriced condos & bungalows here.

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