Fed’s Lacker is out with strong comments this afternoon, following the Dow’s 164 point melt up.
Here are some of his comments.
He sees a ‘less leisurely, but gradual’ pace to hike henceforth.
The case for hikes is clear.
He backs FOUR rate hikes in 2016.
Two percent inflation occurring faster than expected.
Well anchored inflation expectations enough reason to hike.
Strong dollar days are behind us.
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If this is dove/hawk/dove/hawk dance is intentional, then the Fed must be getting what they want. What are they getting? They are getting the market to move sideways.
I guess Yellin will make a speech on Thursday or Friday countering everything he just said.
Take a hike
They are to be suspected of protecting their own exisitance with their actions.
This is a smokescreen again. They will raise in June, then if necessary cut in September after the carnage rapes the economy.
Somebody give that man a football.
First of all, the 2% Fed inflation goal is symmetric meaning inflation over time should spend half of the time above the goal and half below. Since we haven’t even gotten to the goal it is insane to call for rate hikes.
Second, we want well embedded inflation expectations. We just don’t want them too high. Ask Japan what happens when those inflation expectations go away.
Third, asshole.