Why The Fed Won’t Hike On Wednesday
This is a really smart note from @rareviewmacro:
To boil this down, a rate hike on Wednesday will likely to serve to only ‘tighten’ market conditions further, whereas, a decision to keep rates on hold would generate a sell-off in the US dollar and a rally in crude oil which would provide much needed relief to the high yield space.
As we pointed out on Saturday the Fed is between a rock and a hard place. With high yield under renewed pressure this morning the market may be forcing the Fed’s hand yet again…