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Deutsche Bank's top economist says the Fed won't make a move until markets give the all clear
Deutsche Bank's chief US economist Joe LaVorgna doesn't think the Federal Reserve will raise interest rates until the market says it's okay. In a note to clients on Thursday, LaVorgna said that basically, the Fed is on hold until markets make clear that they are ready to handle a change in the Fed's posture. LaVorgna wrote on Thursday (emphasis his): Most importantly, the financial markets have to be discounting a reasonably high probability of an interest rate hike. In other words, the Fed will not surprise the financial markets with a tightening in policy. (Unfortunately, this is how monetary policymakers have ... (full story)