The real reason Fed raised rates is even though their own GDP estimates have collapsed is because they care about investor confidence. Because the only people watching the Fed press conference are the investors. She knows it will boost investor confidence. What would have happened if she didnt raise rates ?The average consumer does not even know who Janet Yellen or the Fed is.
If anything, you’ve had a collapse in [economic] growth estimates since the last time the Fed met. Yet that collapse in GDP forecast has not done anything to alter the Fed’s path because they’ve ignored all of the data, and they raised interest rates yet again.
People are tapped out. People are not spending money because the economy is weak. Prices are rising, but their incomes are not. Department store sales are collapsing.
Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009