This is utterly and fantastically ridiculous. The Fed and their overpaid talking heads have been menacing the markets for months, threatening the world with the specter of a rate hike. Everyone knew that they were full of shit. But because they were so consistent with their menace, people started to believe maybe they were serious, them and their dot plot. Lo and behold, one little bad jobs number and the Fed surrendered everything they believed in.
The Fed Dot plot that was released last year, a plot and a scheme of sheer stupidity, is now at 3%–down from the original target of 4.25%.
The result of all of these eggs being smeared on their faces is the yen gaining by 0.55%% vs the dollar. The euro higher by 0.7% v the dollar. Gold is up 0.4% and bond yields are dropping and crude is down 0.5%
Equities are churning and have gone nowhere.
Bottom line: All eyes should be on the Yen. The Fed has become singularly irrelevant and are a joke, unlike the Bearded Fed of Dr. Benjamin Bernanke. On a more serious matter, watch those negative interest rates dive deeper.
ALL EYES ON THE YEN.
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the fed cares about stability first and foremost. Of course, initiating a rate hike cycle in an election season won’t help Hillary,
But jawboning about raising rates won’t hurt Hillary at all. Everyone knows the banks are for Hillary. And the Fed is an organization of bankers, despite its pretending to be a branch of the government.
The Fed WILL NEVER raise rates.
$21 trillion in debt is the reason. This is common sense.
“Live Meetings” to infinity and beyond.
No reason to raise rates, if jawboning about raising rates works.
These folks below here make a pretty good case for the view that $21 trillion in debt isn’t doing us any harm.
Real World Economics
http://www.rweconomics.com/
I’m not real smart but it seems to me they are constantly adjusting the air-gas mixture in the carburetor to keep markets from going too far one way or another. If they can do that with rumors instead of action, then they can fancy themselves removed from criticism. They don’t have any credibility, but do they really need credibility? Will anyone ever have the spine to stop them?
They might as well say zero rate hike for the rest of the year. Even the average Joe on the street knows that they won’t do anything.
Negative interest rates are genius from a debt standpoint. They are ebola from economic standpoint.