The madness. When will it stop.
Fed hiked by 25 bps, just because.
Because why?
Because they can.
First Fed hike since 2006.
One and done? Hardly. The Fed just released their “dot plot” and they see rates rising to– get this — 4% by 2018 and by 1.5% by the end of 2016.
Give the talking heads 15 minutes before they start talking about when and how much the next hike.
2018 looks like its got a cock on it.
That was a good one.
The bad news is that the market is pricing in a much lower interest rate by the end of 2016. The good news is that the Fed has been adjusting to the markets forecast rather than vice versa.
Fed done with fuckery for now and HYG not going to blow up the economy at least for another quarter. Hi oh!
Checkov, warp 3. Ay, Cuptan.
I may not be a smart man, but I know what ‘insane guidance’ is, and 1% a year over the next 3 years is insane to me.
Aren’t internet rates are high enough already? Geez…
Holy shit, that dot plan. That’s the real news here. Bonds are going to get murdered over the next 2 years if they follow through with this.
Madness. I want some of the drugs they are taking. The fed always follows and never leads. Basically these geniuses believe the economy is robust and must be imminently on the verge of blasting off to heights never seen before for them to move according to that plot.
Quick, what is the rate of change from 0.25% to 4% by 2018?
Yeah, that’s how fucked we are.
The last time the Fed did this (premature increase), it took took 12 years and WW II to unfuck itself.
About time they raised rates. Tired of hearing about it. Now of course CNBC will start talking about the timing of the second rate hike. Plot means nothing. They will change the forecast tomorrow.
They want to lower interest rates by 2-4% if/when another recession hits…
So I guess the logic is “we have to raise rates, before we can lower them”… Or something.
Yeah… except look at the dot plot release last year. Dots for end of 2015 were all the way from 0 to 2%, with media being 1%. There is no way we can predict 1 year out, let alone 3 years.
If the economy keeps growing, there is no reason not to his 1.5% by end of 2016. If we have issues next year, no reason we won’t be at .5-1%.
They will follow this rate path until stocks tell them they are not allowed.
That should happen sometime soon. We still have a couple costanza trading days left until the tantrums start, but they are closer methinks.
Anything to try and force the money out of bonds and into the market
Haven’t you learned in all your years on the street how accurate economists forecasts are?
Fuck the dot plot.