That will make it tough for the Federal Reserve to justify raising interest rates again this month. This means that gasoline prices will go back down and take some strain off consumers' pocketbooks, and heating this winter will be at a reasonable cost. Falling oil prices are one more reason to think the U.S. economy is heading for a soft landing. The reason markets fear rising short-term interest rates is because in the past that has often triggered a recession, falling corporate profits and a steep decline in stock prices. This time, things are different.
Inflation is low, the U.S. economy is very strong and growth is picking up around the world.
The Fed isn't going to push us into a recession. And therefore, I do not believe they will raise rates in late August. Furthermore, corporate profits and stock prices are not going to collapse. What is happening is that investors are awakening to the realities of the market. Beaten down stocks in traditional business are the best buys in today's market.