The U.S. Federal Reserve had four possible outcomes coming out of their latest FOMC meeting on Thursday. And it seems that the Fed may have ended up with the worst possible result. Not only did the Fed potentially forgo their last reasonable opportunity to get off of the zero bound and squeeze in an interest rate increase for a future rainy economic day, but they may have also unwittingly sparked a new wave of downside stock market volatility that they have been so tediously careful to avoid over the last several years. At least so far, the stock market has voted down the Fed’s latest decision. But now that the chatter and uncertainty about whether the Fed is going to raise interest rates is behind us at least for the next few weeks, what exactly can we reasonably expect from capital markets from here?
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