Yes, the reason that I brought up the possibility of further rate increases is the Washington Post editorial (Thursday, I believe) which indicated that the target rate for the end of 2016 is 1.4 %. The article is at:
https://www.washingtonpost.com/opinions/the-federal-reserve-makes-a-good-judgment-call-in-raising-interest-rates/2015/12/18/7954e1c6-a4f8-11e5-ad3f-991ce3374e23_story.html
I do not know where they got this number, but it would probably not be published felicitously. If this happened, I believe that we would have a disaster on our hands.
Either way, the discount rate increase last Wednesday is the most significant factor in Zweig's model. I do not insist that anyone take that model seriously.
Good luck,
Tex
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Posted by: mrweyl@hotmail.com
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