The Federal Reserve just came out and said that it was going to be “patient” when normalizing the monetary policy. I know Wall Street is jubilant and the stock market spiked on the news, but I think this is really ominous and it is nothing to be celebrated. To me, that means don’t expect the Fed to raise interest rates anytime soon because the economy is much worse than what they are telling you. Why else would Fed Head Janet Yellen come out and say the Fed was going to keep the easy money policies for a “considerable time.” If we did have a so called “recovery,” wouldn’t you be raising rates and pulling back on the juice?
Falling oil prices may be a joy at the pump here, but for Russia, it is a nightmare. There is talk of China bailing out Russia. There are rumors of bank runs in Russia despite a new 17% interest rate. Russia’s currency, the ruble, has had its buying power cut in half in a matter of months. It is crystal clear the U.S. and Russia are at economic war, and Vladimir Putin gave a speech this week to essentially say the Russian Bear is not going to roll over.
I also think reopening relations with Cuba was a very bad deal because the U.S. did not get much in return. Democrats like Senator Robert Menendez say it “vindicates the brutal behavior” of the Cuban government. Republican Senator Marco Rubio says President Obama “betrayed” Cubans fighting for freedom.
Join Greg Hunter as he analyzes these stories and more in the Weekly News Wrap-Up.
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