Can you explain this to me? The second I saw Grandma Yellen and her idiot smile, I knew we were in for a severe beat-down. But this type of tone deaf jargon out of the Fed is completely insane. Fed’s Dudley made a speech today and didn’t mention the markets at all. He said inflation was still a concern and how employment data suggested the economy was smoking, fucking, pistol hot, and how rate hikes, more or less, are still on track for 2016.
You’ve got to be kidding me.
Watch the clip.
Dow futures are down 370.
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The Fed wants to normalize rates in anticipation of global got money returning to the US a growth in EMs will take couple of years to return..
The stock market is adjusting. If the Fed’s role is to support the stock market, he is a lunatic. If the Fed’s role is to slowly make adjustments in anticipation of trends then he makes sense.
Fed ain’t gonna be able to hike but maybe one more time this year.
hahahaha.
Okay buddy.
Yes, Wall Street is not Main Street and while I agree the Fed’s role is not to support the stock market (except via liquidity infusion on the occasional crash) it’s primary roles are ” Maximum employment, stable prices, and moderate long-term interest rates.”
Price inflation in most categories is non existent (and wages leading to inflation are subdued) and while the employment rate is rather low (not historically), there is record non-participation and the job growth is the result of multiple part time jobs taken.
I can eventually see QE4 and negative rates.
I guess the Fed must think the market is still overvalued. And they also want to increase the earnings of their member banks by hiking rates.
38 percent of the 8,039 commercial banks in the United States are members of the Federal Reserve System. So thousands of banks may have been asking the FOMC to please hike rates so that they can justify hiking everyone’s interest on their credit cards, mortgages, car loans, business loans etc. So maybe the Fed is saying Yes to their members. And popping the bubble in stock valuations that they think we have now.
I see there on the shot of the TV screen “inflation to rise once energy stops falling, dollar stops rising.” So they have their “official” justification, which apparently has nothing to do with current facts but is a wild guess about what happens in the future. It’s like “I am justifying what I am doing now by claiming that what is happening now is going to reverse and the opposite of that is going to happen. So once current trends reverse and the opposite trend happens, what I am doing today will make sense.”
They really need to hire someone to create more believable justifications. OTOH, maybe not. Numerous people on the TeeVee, and on the Internet conspiracy web sites, have proven over the last decade or 2, that the American public is willing to believe all kinds of bs.
Of course, this is like most official justifications for doing the wrong thing– bs– a cover-up for doing things that would incur the justified wrath of almost everyone– except for some special interest group that benefits from it.