I think it’s fairly obvious what the Fed is trying to do here. They purposely tanked the economy under Bush and now they’re doing it again with Trump.
Following 8 years of unprecedented central bank easing, all of a sudden, amidst barn burning 1% GDP growth forecasts, the Federal Reserve is hawkish, to a ridiculous degree.
Boston’s Fed’s Rosengren, a non voting member on the board this year, said in a speech today he’d like to see a rate hike ‘at every other meeting’ this year.
Neither inflation or GDP expectations are growing beyond trend. I’d like to know how he could justify such tightness.
“Importantly, this would still be a fully data-dependent approach, not a preset path, as it would hinge on the incoming data — but the base case would be four tightenings, reflecting the strength of the economy that I believe justifies more regular normalization of interest rates,” Rosengren said, according to a text of a speech he was to deliver Wednesday morning to the Boston Economic Club.
Amongst his chief concern is getting ahead of a ‘potentionally overheating economy.’
Since when is productivy at 35 year lows and GDP of 1% considered overheating, especially in an economy that is consumer strapped?
“If the economy runs too hot, it could ultimately require a less gradual monetary policy adjustment – which could potentially place at risk the significant progress the economy and labor market have made since the Great Recession,” he said.
In a separate speech today, Fed’s Evans also alluded to 4 rate hikes for 2017, data permitting of course.
The market is reacting by buying bonds, pricing in crazy at the Fed.
These people need to be stopped before they destroy us all.
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I’m sure its all a coincidence and we can’t see the brilliance of their decisions. The people going on about a private fed and a deepstate working in tandem answering to the same “globalist” interests to subvert democracy are just lunatics.
End the FED and drive a wooden stake through the chest of all that run and own this abomination called Federal Reserve.
Historically, after every two term president there has been a recession the following year. 100%. Fed wants the streak to continue.
The Fed tends to overreach and cause the economy to contract. We have a ways to go before that happens.
good news for the savers. The pension fund crisis needs to be considered as well. The too low rates for too long have done serious damage to the Pension plans.
the risk free rate of return needs adjusting upwards.
Dude the pensions the fuckers in Cali Gov gifted themselves are insane. No way to pay that shit. But hope springs eternal in Calmexico.
Illinois…..
Government-worker pensions already consume one-fourth of the state’s budget. Interest on the debt is 9.1B per year…pension reform is required but also part of the problem is that the risk free rate is artificially low and this is leading to a mispricing of all asset classes.
Water on the brain possibly. The fed under Greenspan screwed many of us and I don’t tend to forget losing money easily. The current over-reaction to the low side will have to be compensated for extremely delicately. Its been a decade already so perhaps another decade to correct the interest rate anomally. That will teach us much as the manufacturing has been moved to China and we will have to lower our standard of living. This is happening via ultra-low interest rates.
FLY couple higher beta energy names/ lotto tickets…if the turn is real then beta is what you want……
$PWE ( acting like the turn is real)
$BTE
If they were trying to move the needle on yields, they failed miserably today.
They purposely tanked the economy under Bush and now they’re doing it again with Trump.
Subprime MBS tanked the market Fly.
You know it.
If you want to tell me subprime only happened because of the Fed situation thats bogus.
The banks pushed garbage into financial institutions. Then they shorted the garbage.
They made a movie… Big Short. Watch it.
For all you idiots who can’t read books.
I am fully aware that my attitude restricts anyone with an ego like yours from agreeing with me or admitting I am right.
No matter how clear the facts are.
The Fed tanks economies to get republicans out…
…nothing to do with republicans deregulating everything always all the time every time.
You come into the house and tell the kids no rules… and wonder why the house always ends up getting burnt down?
what passes for your knowledge I can understand
So you do agree with us; the problem is with government and in Washington DC. The financial crisis was born in DC not NYC.
Institutional malfunctions at every level…. corporate government education……is the cause of the problems in America and basically Western democracies today