She's got the whole world in her hands, she's got the whole wide world in her hand, she's got the whole world in her hand... Fed Chair Janet Yellen and her band of merry men punted on raising interest rates mainly on concerns of low inflation and concerns about the global economic world.
It seems now the Fed's mandate is now expanded to be concerned about what impact her decision may have on the global economy. While some might argue that exceeds the Fed's mandate the truth is that if the Fed raises rates and adds to deflationary and recessionary pressures in Asia and Europe and other emerging markets, ultimately that will effect our economy here at home and probably already has. After stocks railed on the joy that rates would remain low, they retreated on the fact that perhaps there are larger problems with the global economy and in turns could hurt our exports.
One commodity that we can't export is U.S oil as the U.S. export ban remains in place. But we can refine the heck out of it. The American Petroleum Institute reported in its U.S. gasoline production hit a record 10.1 million barrels a day in August. Maybe we should praise U.S. refiners for driving down gas prices. Refiners produced more that our 9.31 million barrels of production.
Of course, I am predicting that U.S. oil output will fall. I believe it is falling much faster than people believe. We are predicting that U.S. oil output will crater as rig counts will fall capital will dry up.