No Rate Hikes Because The World Economy is NOT IN RECOVERY!! End of Story.

By Daniel at 4 November, 2009, 9:03 am

Fed policy makers end a two-day meeting today, with economists predicting the central bank will say it needs to keep borrowing costs low to sustain growth. The European Central Bank and the Bank of England set monetary policy tomorrow. International Monetary Fund Managing Director Dominique Strauss- Kahn said it’s too soon for governments to consider halting stimulus programs.

“It’s too risky for the Federal Reserve to play around raising interest rates before the economic recovery takes hold and becomes independent of stimulus measures,” said Tim Brunne, a credit strategist with UniCredit SpA in Munich. “We don’t expect the Fed to start raising rates until the fourth quarter of 2010 at the earliest.”

- Dr. Panik