The euphoria in the market is obvious from the way the DIJA and S&P has behaved today. Most investors have chosen to read the employment data as a positive. The consequences of doing so will not be obvious till such a time that something contrary should happen to show that it was a wrong read. Now there is one another aspect which this data throws up.. the unemployment rate comes down to 6.6. which is shy away from the 6.5 percent,which the previous fed governor had said will be the limit for re think on the interest rate raise.
Now is it not time to rethink on it as the figure is close to 6.5 percent?and why wait till 2015 to increase the rates from near zero levels it is at present.The rates should be up by the time tapering is completed .Tapering too can now be done at a faster pacer.This may not be liked by the submerging economies....but the sooner we get back to fundamentals and not keep riding on gasoline fumes the better it is for the markets and the world economy.
Now is it not time to rethink on it as the figure is close to 6.5 percent?and why wait till 2015 to increase the rates from near zero levels it is at present.The rates should be up by the time tapering is completed .Tapering too can now be done at a faster pacer.This may not be liked by the submerging economies....but the sooner we get back to fundamentals and not keep riding on gasoline fumes the better it is for the markets and the world economy.