Former bank analyst Meredith Whitney, who was famous for being the first to issue warnings on the eve of the 2007 global financial crisis, said that as the one-time economic boost effect brought about by the World Cup and the balance of fiscal spending gradually subsides, the US economy will usher in a “liquidation time” in the fourth quarter. In an interview with the media on Tuesday, Whitney said that the weekly credit card balance, a real-time indicator that reflects consumer spending rather than revolving debt, is currently growing slower than in May. At the same time, American consumers are also absorbing the pressure brought about by rising gasoline prices. Whitney, founder and CEO of Meredith Whitney Advisory Group, said the above factors will provide a reason for the Federal Reserve to keep interest rates unchanged on Wednesday. She refuted the view put forward by agencies such as Citadel Securities that an unexpected rate hike would help bolster the credibility of Federal Reserve Chairman Kevin Walsh. Whitney believes that Walsh's practice of setting up five policy working groups actually took him several months without rushing to make a policy shift decision. “I think they will keep interest rates unchanged while continuing to use tough, hawkish terms to reserve room for future action,” she said. When talking about Walsh, Whitney said, “His tendency was to wait and make sure he actually made the right decision.”

Former bank analyst Meredith Whitney, who was famous for being the first to issue warnings on the eve of the 2007 global financial crisis, said that as the one-time economic boost effect brought about by the World Cup and the balance of fiscal spending gradually subsides, the US economy will usher in a “liquidation time” in the fourth quarter. In an interview with the media on Tuesday, Whitney said that the weekly credit card balance, a real-time indicator that reflects consumer spending rather than revolving debt, is currently growing slower than in May. At the same time, American consumers are also absorbing the pressure brought about by rising gasoline prices. Whitney, founder and CEO of Meredith Whitney Advisory Group, said the above factors will provide a reason for the Federal Reserve to keep interest rates unchanged on Wednesday. She refuted the view put forward by agencies such as Citadel Securities that an unexpected rate hike would help bolster the credibility of Federal Reserve Chairman Kevin Walsh. Whitney believes that Walsh's practice of setting up five policy working groups actually took him several months without rushing to make a policy shift decision. “I think they will keep interest rates unchanged while continuing to use tough, hawkish terms to reserve room for future action,” she said. When talking about Walsh, Whitney said, “His tendency was to wait and make sure he actually made the right decision.”