One of the more prominent hawks at the FOMC is out suggesting that the Fed may need to raise more than 3 times in 2017, in order to destroy the economy, or ‘fight inflation.’
Taking a quick gander at American inflation rates since 2008, God only knows what in the hell Fed’s Lacker is talking about.
“If we were to see a burst of demand growth, that would suggest a steeper path of rates to maintain price stability,” the president of the Federal Reserve Bank of Richmond told reporters Friday after taking part in a panel discussion in Charlotte, North Carolina.
“There is a range of paces of interest rate hikes that would qualify as gradual, including paces more rapid than one or two or three a year,” he said. “We can get where we need to be with a pace of increases that qualifies as gradual.” His next scheduled turn as a Federal Open Market Committee voter is in 2018.
“My guess would be more than three,” Lacker said. “I have been advocating for some time that we return — that we raise rates.”
“We think there is some upside risk because the new administration wants faster growth and it is possible some of the things they are talking about will drive productivity higher,” he told Bloomberg in a telephone interview. “But we don’t think that would be likely to occur in 2017. It would probably be 2018 or 2019. That will give us time as monetary policy makers to assess what is being done and make a judgment as we go forward.”
US GDP has been sub 2% for some time now. The notion that rates need to rise sharply to fend off an overheating economy — marred by runaway inflation — is comical.
What fucking inflation?????
Too much discussion. Float DC out to sea and sink it in the Atlantic. You laugh but DC is your nemesis.
I agree.
It was much better when the cameras were interested in the size of the files Alan Greenspan was carrying on Fed day to guess on a hike or not.
Speeches every day by the Fed folks does not add transparency, just confusion.
In as far as hedges I feel the Swiss franc still has much to be desired. Despite tagging along with the Euro for trade purposes the Swiss currency is pure money. Better than gold for liquidity by far. But it does go stale-dated so no mattress storage.
Higher membership rates being charged for Exodus in 2017 (which I consider a core inflation indicator), thus higher overall inflation risk?
They aren’t fighting inflation, they are fighting gold, bonds and cash next
Exactomundo
Thumbs up!
Either he is sipping too much of the spiced rum eggnog or he is getting his marching orders from destroy Trump now grandma Yellen.
That fool is mainlining fake news. Once we destroy that fake news all will be well. These wizards will be wizards again. We must stop fake news at all costs.
That’s funny. Rate hikes are inflationary. Its a price increase.