With the market now predicting virtually zero rate rate hikes for the rest of 2016...
... the Fed will have to take a machete to its next exercise in erroneous groupthink known as the "dot plot", when it will have to admit it was dead wrong about the state of the US and global economy.
It's no secret that trillions in global QE and the descent into the NIRP twilight zone have done very little to resuscitate global growth and trade in the wake of the crisis.
Indeed, eight years on and the world is mired in subpar growth and faces a global deflationary supply glut that's driven commodity prices to their lowest levels of the twenty-first century on the way to undercutting central bankers' collective efforts to jumpstart inflation and keep the entire world from becoming Japanified.
While the biggest news of the night had nothing to do with either oil or China, all that mattered to US equity futures trading also was oil and China, and since WTI managed to rebound modestly from their biggest 2-day drop in years, continuing the trend of unprecedented, HFT-driven volatility which has far surpassed that of equities and is shown in the chart below...
If Donald Trump has distanced himself from some of the positions held by two of the powerful wings of the conservative movement—free marketeers and evangelical Christians—he has provoked a fury among members of the third GOP wing, the neoconservatives, who for all practical purposes dominate the party’s foreign policy thinking.