Are the Fed's Low Rates Justified?

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The January FOMC meeting on Wednesday, January 29th, didn't produce a hike in interest rates. Zev Fima, research analyst for Jim Cramer's ActionAlertsPLUS investing club, sat down with Collin Martin, a fixed income strategist at the Schwab Center for Financial Research, to discuss whether Fed Chair Jerome Powell is justified in keeping interest rates low. Here is what he had to say:

"We live in a global market right now, and not to undersell our economy, but it's almost like best house on a bad block. Our growth is doing fine, but we're doing a lot better than a lot of these other developed market economies like Japan or Europe, for example. So even though our growth is okay, inflation's below trend, you have to look at the global markets, you have to look at negative interest rates."

Watch the video above to see what else Martin had to say and his thoughts on what would happen if the Fed did decide to start hiking rates.

Also, be sure to check out the full video on ActionAlertsPLUS.com where they discussed what the yield curve is saying about a possible recession and zombie corporations. You'll also get exclusive advice for approaching the markets and individual stocks as coronavirus fears heat up.

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