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\\n\\t* \\xa0Yesterday, the Federal Reserve finally met market expectations and increased interest rates to .25%
\\n\\t* Actually, the official rate was 0 - .25 and now, the official rate is .25 to .5
\\n\\t* The actual rate was always in the middle between zero and .25
\\n\\t* Assuming the Fed tries to keep the rate closer to .25 than .5, the actual increase in rates could be less than 25 basis points
\\n\\t* The initial reaction to this rate hike is to proclaim the end of the era of "cheap money"
\\n\\t* .25% is still cheap money.\\xa0 Alan Greenspan never went below 1%.
\\n\\t* Some people are saying "Peter Schiff was wrong" because the Fed did raise rates
\\n\\t* Actually, in a recent podcast I noted that the Fed changed their narrative away from "data dependent" to an expression of faith in the economy, opening the door to a symbolic rate hike unsupported by data
\\n\\t* I was alone throughout the year believing that the Fed would not raise rates prior to this change in narrative
\\n\\t* The Fed was afraid that to not raise rates this year, it would be a vote of "no confidence" in the economy
\\n\\t* Ultimately, the Fed felt that even though the data didn\'t justify it, they had to raise rates because of psychological damage to the markets
\\n\\t* If the economy were really sound, we would not need Janet Yellen to express confidence in the economy - a strong economy creates its own confidence.
\\n\\t* We don\'t need propaganda in the form of a symbolic rate hike
\\n\\t* The Fed did not even have the last recession in their forecast until we were well into the recession, so who cares about the Fed\'s level of confidence?
\\n\\t* In an earlier podcast, I referred to Ben Bernanke\'s comment that he felt he was a representative of the administration
\\n\\t* Janet Yellen is creating a sense of confidence in the economy for the same reason
\\n\\t* The Fed is now pretending that we will have more rate hikes in the future, forecasting 4 more hikes during 2016
\\n\\t* I believe the economy is not strong enough to accommodate these rate hikes and neither does Janet Yellen
\\n\\t* The ultimate irony is the data that came out the morning of the rate hike
\\n\\t* Industrial Production: they were forecasting a drop of .2, which is still bad, instead, we got a drop of .6
\\n\\t* The PMI Manufacturing Index was the lowest in many years, 51.3 down from 52.6
\\n\\t* More bad news: The Philadelphia Fed last month showed an increase of 1.9, so 1.2 was forcasted - instead we dropped 5.9
\\n\\t* These numbers show an economy that is decelerating
\\n\\t* If you look at a chart, these numbers are about to crash even lower
\\n\\t* These numbers are flashing recession, recession, recession
\\n\\t* If you\'re a Keynsenian, the prescription for the condition this economy has would be stimulus, not an interest rates
\\n\\t* The air was coming out of this bubble anyway, all the Fed did was increase the hole for the air to come out
\\n\\t* The market was up just before the hike, which was interpreted as a green light to raise rates. I said in an earlier podcast that that would be a mistake, because the market would then tank, and that is what happened today
\\n\\t* Transports have been the weakest of all, despite oil prices
\\n\\t* We continue to see weakness in the high-yield bond market as the air is coming out of that bubble
\\n\\t* It is probable that the stock market is going to get a lot worse between now and the time the Fed is supposed to hike rates again
\\n\\t* But the problem for the Fed now, is if the market starts to tank now, they can\'t do anything until the jobs numbers begin to show weakness
\\n\\t* Janet Yellen actually referred to this move as "ahead of the curve", meaning that if she waited any longer, she would overshoot on her objectives:
\\n\\t* One was unemployment.\\xa0 How can that get too low? Especially with so many people out of the labor market,\\n\\nOur Sponsors:\\n* Check out Rosetta Stone and use my code TODAY for a great deal: https://www.rosettastone.com/ \\n\\nPrivacy & Opt-Out: https://redcircle.com/privacy'