QE’s influence on employment is waning. Deflation threats are weakening. While the probability of inflation may be low, its risks are significant, so the Fed must be cautious, especially given its poor forecasting record. Even mere signals of rising rates may carry new benefits for US foreign policy. The key ramifications and questions for global markets Few expect any meaningful increase in US interest rates before mid-2015 because: The Federal Reserve has made clear that it won’t raise rates until US employment improves and that its continued recovery no longer needs exceptionally accommodative Fed policy. ... (full story)