At a meeting with Congress on Wednesday, U.S. Federal Reserve Chairwoman Janet Yellen reiterated the Fed’s plan to raise interest rates in the months ahead.
But her words seemed to come with a hint of doubt…
Yellen discussed several concerns about the economy that could make the Federal Reserve hesitate on the timing of rate hikes.
Yellen admitted that growth was slowing in the United States due to declines in stock prices, higher rates for risky borrowers, and the appreciation of the U.S. dollar.
With many analysts concerned that another economic recession could be coming, lawmakers asked whether the Fed would consider controversial negative interest rates. These negative interest rates are only brought up because interest rates are already so low.
Yellen responded by saying there was nothing to prevent the Fed from lowering rates below zero.
The Dow Jones Industrial Average has dropped nearly 13% from its May highs. And the Nasdaq is down 17% from its July highs.
And according to Money Morning Chief Investment Strategist Keith Fitz-Gerald, the Fed’s experiments “won’t end well” for the markets. Fitz-Gerald made his usual appearance on CNBC yesterday (Wednesday) and discussed the serious negative impact the Federal Reserve is having on the stock market now…
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