Monday, June 27, 2016

Janet Yellen is probably thankful to Brexit

As far as Janet Yellen is concerned, the British have given her the gift that keeps on giving, Now, Janet Yellen can blame her failure to raise rates on Brexit. She could even use this as an excuse to cut rates back to zero and launch QE4. 

Since the process is bound to be long, messy and fraught with uncertainties this will be a handy excuse that the Fed will be able to rely on for years.

Given that there is already much concern that the dollar is valued too highly against most currencies, any surge in the dollar that results from Brexit will have to be fought by the Federal Reserve through lower interest rates and quantitative easing

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009