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The Fed has been mugged by reality: Boockvar

For investors anxiously awaiting Wednesday's Fed announcement, Peter Boockvar has a clear message: Your fears are misplaced.

The managing director and chief market analyst at The Lindsey Group explained that a rate hike in June or in July is unlikely. Furthermore, he reasoned that traders should look across the pond to the U.K. if they're in need of reasons to worry.

"The market has tossed the Fed aside," said Boockvar. "They've been mugged by the reality of the global economy continuing to shrink."

The Brexit vote is just eight days away and favorable sentiment toward leaving the European Union continues to grow within the U.K. As it stands, Boockvar described a British departure from the EU as an occurrence that would create a dangerous ripple effect across global markets in the near term.

"If the Brits vote to leave, it can take two years for it to physically happen and so much can happen within that time frame," said Boockvar, who predicted that Italy, Spain and Portugal could also follow the U.K.'s example. From here, he fears that a mass exodus from the EU could trigger a global recession. This belief stems from the notion that the bloc has established rules that do not entice member countries to want to stay.

"Think about the euro. It actually was a great idea. If I'm Italy and you're Spain we can do business," noted Boockvar, who says that ease of conducting commerce in Europe no longer exists because of bureaucracy. "They need to decentralize power out of Brussels and give it more to the individual countries."

He also blamed the European Central Bank for "mucking things up" and racking up serious debt in efforts to establish a one-size-fits-all monetary policy in Europe.

"To me, the ECB is the biggest threat to this whole experiment," said Boockvar, who added that it's near impossible to find a common financial platform for countries like Germany, France, Italy and Greece to operate across.

Additionally, Boockvar remains skeptical of Europe's ability to ease the potential panic on a "leave" vote as he feels that the general public has become repulsed with today's leadership.

"What we're seeing with central banks, our own presidential election, in the U.K., potential in the vote in Spain is disgust with the establishment," said Boockvar, referring to the general election in Spain. Now, with people losing their faith in central banks, he sees monetary policies losing a grip on their ability to maintain calm in the marketplace.

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