Rosenberg noted that any adjustments by the Fed could be made to late, citing the tech bubble bursting in 2001 and the financial crisis in 2008 as prime examples.
“The Fed will be forced to ease policy before too long, and is moving incrementally in that direction. But as is often the case, they are far too late,” Rosenberg said. “The lags. This is what the consensus economics community seems to be missing, which is why it has never accurately called for a recession, even when it was starting. Read what many were saying in early 2001 and 2008 and you will see what I mean.”
“After reading the dovish tone of the minutes, one is left wondering why the Dec. 19 rate hike was even necessary,” Rosenberg added.
For more trends, visit the Rising Rates Channel.