The U.S. Federal Reserve won’t raise interest rates more than once in 2016 after a bout of global volatility to start the year, according to Keynesian economist Nouriel Roubini, reports Bloomberg.
“The Fed is going to hike only once, not four times, this year, not even two times,” Roubini said in Moscow at a conference on emerging markets organized by Credit Suisse Group AG. It’s a central bank “not just for the U.S. economy but also for the global economy,” which is why it’s “more likely to go more slowly.”
I have no idea how many more hikes the Fed will institute this year, though at least one is likely.
The idea promoted by Austrian-lites that the Fed would have to reverse its December hike and go negative has completely died.