Still geopolitical risk and macroeconomic problems with the dollar could come back. But for now, the FED is going to let the house crash take it's course...and it is happening with a vengence in most areas...
The lack of house equity will slow consumer spending MORE THAN any rate hike could...as Americans are dependant on their house equity as an ATM for financing lifestyle.
It is possible that the FED will be frozen in place for months...maybe even a year.
FED said:
Readings on core inflation have been elevated, and the high levels of resource utilization and of the prices of energy and other commodities have the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.
Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.
