“This bleeds through the EU (European Union) narrative in terms of its unity and its popularity,” said Peter Kenny, senior market analyst for Wall Street firm Global Markets Advisory Group. Kenny said the unease in the markets would likely keep the Federal Reserve from raising rates in the short term, and in the long term the consequences would be far-reaching.
“Effectively what that means is that the Fed is not going to be in the position to normalize rates at the extent they were telegraphing only a week and a half ago,” said Kenny. “They can raise rates once at the most by the end of the year.
Coverage Analysis and More by Debbie Carlson and Sam Thielman from the The Guardian