I honestly can't figure out why on God's green earth they would raise rates in December. If they do, I have to seriously wonder about their mental capacities.
Not only is inflation not a deal right now.. it's near post WWII lows (read: there is no inflation... the September rate was 0.0% and for 2015 we're at 0)... but the rate of wage and employment growth is hardly anywhere near thresholds to warrant action.
The only decent argument I heard, from Foucaulf, was that we have a responsibility to the world and right now returns on American bonds are so low that people are instead buying up and shorting other countries' bonds and ruining their economies... so us raising rates might encourage more selling of American bonds instead.
But that argument is hardly a reason to potentially harm the economy, make the U.S. dollar even stronger, and nip wage and employment growth in the bud just as it begins to move upwards.
If they raise rates.. they're either woefully incompetent or they have ulterior motives.
Maybe they have some European vacations planned for next year and want more bang for their buck. Im going to hold off on converting my money to euros for my upcoming trip until they decide on the rates. Fingers crossed it goes up!
