Hey, he said this shit, not me.
Fed’s Williams says Brexit a factor in June hike and Fed could always hold off until July; Happy with market reaction to minutes; does not expect to hike in back-to-back meetings, preferring a gradual approach
If Williams is happy with the markets response post minutes, seeing that the market was down and all, one can only presume him to be a macabre of sorts, clamoring for market drops, no?
What a diabolical man, yes?
One thing of note: the June FOMC meeting is on June the 15th. The BREXIT vote will occur on June the 23rd. Therefore, and this goes without saying, the whole notion of the Fed waiting to see what the Brits might do is irrelevant for the all important June meeting. We may very well find ourselves hiking into a fucking buzz saw by that time.
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Fed gonna hike in July and ES gonna rally to 2125 before it’s time to get real short for the yearly July-August monster crash.
I’m interpreting this as him basically saying Fed will hike in July unless the Brits decide to leave the EU. What he seems to say is that with Brexit being a factor, it’ll definitely play into the Fed’s decision on whether to hike or not. Of course, they won’t have the advantage of knowing if Brexit actually passes or not, but the uncertainty of the event is a factor.
My conclusion on this statement is that with Brexit not likely happening (check out the Bloomberg Tracker with only 18% of Brexit happening; it’s not the end all of be all but does provide some guidance), Fed is telegraphing a July hike, and not June.
I hate to defend FED gov’s, but waht he said was,
“It’s a good thing that markets should be viewing things in a similar light (as) we do, and I think that as the FOMC minutes indicated … that I and others view the upcoming meetings as live meetings””
In other words, he does wants not want the market to assume that there will be no rate hike in June, so that when there is no rate hike, the market will act as if there was a rate cut. Great CB strategy when you can’t actually raise rates (because the economy can’t take it) and can’t lower them (because they need ammo for future use).