InternationalMarkets & Economy

Markets are rebounding at news of solutions certain to fail

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

What a week. “Silly Season” is August, when nothing happens and headlines say “Man Bites Dog.” It’s come early this year. Here in Boulder, a road-rage incident this week concluded with one participant throwing a pecan pie at the other’s car. Markets have been upset by China’s stock crash and Grexit but now are happily rebounding at news of solutions certain to fail. “Fail” depending on how much time you’ve got. Put those two pie fights aside for Federal Reserve Chair Janet Yellen this morning: “... This initial increase in the federal funds rate, whenever it occurs, will by itself have only a very small effect on the overall level of monetary accommodation ... I currently anticipate that ... normalization will be gradual, and that monetary policy will need to be highly supportive of economic activity for quite some time.” The Fed is coming with the first 0.25 percent rate hike in September, unless the U.S. economy face-plants soon. I do not know one sin...