The funniest thing about all of this jawboning by the Fed is that the market doesn’t believe them. Admit it, you don’t believe they’ll hike in June, July or at anytime in 2016. Expert after expert issue statements and voice opinions during interviews doubting the specter.
Well, apparently, the specter is real, whether you want to believe it or not.
“If incoming data continue to support those expectations, I would see it as appropriate to continue to gradually raise the federal funds rate. Depending on the incoming data and the evolving risks, another rate increase may be appropriate fairly soon,” Powell said.
He said it will be important to see a strengthening of growth in the second quarter along with “strong” job growth, further reductions in the unemployment rate and other measures of slack, and increases in wages.
After each retail sales miss, the Federal Reserve cravenly concoct new speeches to warn Americans of a tightening credit noose to come.
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They lost credibility. Nobody cares what they said anymore since we know that the market rules over them.
Trumpmeister, you hit the nail on the head. All there babbling about being “data dependent” is all based on how the market reacts to these supposed accurate economic and labor indicators, not the actual data itself. It’s very convenient that every time the market begins to rise and volatility is suppressed, the Fed starts talking about increasing rates, and vice versa when market is falling and volatility is creeping up, despite whatever reading GPD, unemployment, etc. come out at. The rate decisions are totally dependent upon the capital markets; that’s their data.