World Economy

Fed Boxed Into a Corner

Fed Boxed Into a CornerFed Boxed Into a Corner

The Federal Reserve’s claims that the US is not entering a recession are not reassuring, according to one widely followed market watcher who insists a downturn is already underway. Investor Raoul Pal told CNBC’s “Fast Money” last week, that the state of the market and the uneven economy has the Federal Reserve “paralyzed”—and no matter how it acts will result in catastrophe. “If they raise rates, the dollar goes higher and it creates a problem for them. If they don’t do anything then it’s a sign that the economy is weak and that will lead asset prices to sell off,” said Pal, publisher of The Global Macro Investor. “They are really boxed into a corner.”