This was the talk of The FED before June:
This was US Federal Reserve boss Janet Yellen’s speech on Monday 6th June 2016 after “black Friday”:
‘In particular, an important theme of my remarks today will be the inevitable uncertainty surrounding the outlook for the economy. Unfortunately, all economic projections are certain to turn out to be inaccurate in some respects, and possibly significantly so. Will the economic situation in Europe or China take a turn for the worse or
exceed expectations? Will U.S. productivity growth pick up and allow stronger growth of gross domestic product (GDP) and incomes or instead continue to stagnate? What will happen with the price of oil? The uncertainties are sizable, and progress toward our goals and, by implication, the appropriate stance of monetary policy will depend on how these uncertainties evolve.’
Which simply means this:
Ok, right, I get it…
What this speech implies iS that the FED is now terrified of uncertainty and so is now watching the market for clues to get an idea of what to do next.
Think about this…this like a situation where two dogs sit and stare at each other wondering what the other is going to do.