What is worse is that credit deterioration is seeping into the banking system. Today Wells Fargo Bank said that “stresses” are building in its portfolio of loans to energy companies because of the drop in the price of oil, which is another reason the Fed may choose to avoid hiking rates.
The best reason for the Fed not to raise rates is the U.S. government’s own debt load. This is why I have been saying for years that rates will never go up. The U.S. government has so much debt it cannot afford to pay a fair rate of interest.
- Source, James Turk via King World News