It is not a new info that the federal reserve will eventually increase the interest rate. Considering the significant growth during Q2 by 4% increase qoq, it was an over-expectation by the analysts and economists. Higher job market, lower jobless claims and increase in hiring is the affect of stronger economy in the US.
The above chart shows an increase in job opening, the highest since 2001. The U.S. economy have never been this good after the credit crisis in 2008, but most of the money flowing are from the Feds buying treasury bond in the market, part of the Quantitative Easing in order to get the economy out of recession.
Below chart shows how much the Feds have spent during QE
Be on the look out for economic news during the Q3, even though the Feds thinks it's still a good idea to keep the interest rate low. Keep in mind, low interest rate and large amount of dollar in the circulation will create a lower value of the dollar. If they keep the interest rate at 0.25% for a long time, the dollar will eventually lose its value.


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