Fed Minutes Show Worry Over Stock Market (02/18/2016)

In December the Fed said it was going to raise rates four times.

CNBC economists turned that claim into a prediction.

But now that the stock market has fallen this year those predictions are no longer valid and yesterday's Fed minutes show that the Fed is very worried.

From Reuters:

"A number of participants were concerned about the potential drag on the U.S. economy from the broader effects of a greater-than-expected slowdown in China and other (emerging market economies)," according to the minutes.

Wall Street's skepticism that the Fed would raise rates at all this year increased after the release of the minutes.

Prices for fed funds futures implied investors saw a roughly 30 percent chance of a hike in December and less than that at prior meetings, according to CME Group. Bets on a December hike were about 40 percent before the minutes were released.

A number of Fed policymakers said the recent moves in financial markets "were difficult to reconcile" with signs of underlying U.S. economic strength.

Full story here.

Since the S&P 500 has rallied for four days off of its January low stock market bubble bulls are no longer worried and are dreaming of giant gains again.

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