Thursday, May 19, 2016

Roubini Sees Only One Fed Hike in 2016

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.



  1. I have maintained that the FED is boxed in and the economy is deteriorating. Rather like a deer in the Headlights, they are. I'm looking forward to measuring how long it will take when the metrics you follow finally catch up with the reality of the real economy.

  2. No surprise that the Fed just suggests maybe a hike in June and markets start grinding lower. A couple of weeks of this and a few percentage points down YTD and the Fed will reiterate its desire to be "patient."