What is this a fucking joke? They trot this crazy eyed woman out there when everything is falling apart to tell us China is not a concern and how our growth is so good, so robust, why, if left only to her, she’d have rates exploding to the upside in no time at all.
“I am not that concerned about that in terms of the U.S. economy,” Mester said in an interview with Bloomberg television.
How very nice.
“We’ve built in a weakening path for China. I don’t see that as a significant risk to the forecast” for the U.S. economy, she sai
Don’t worry, Loretta Mester built it all in. Oh, as for U.S. GDP growth, she has some estimates for us.
“I’m pretty comfortable with the median path … I think that’s not a bad description,” Mester, who votes on U.S. monetary policy this year under a rotation, said on the sidelines of an American Economic Association meeting.
“I’m probably a little steeper than that in the near term, just because I have a higher growth forecast.”
Mester expects the U.S. economy to grow at a 2.5 percent to 2.75 percent pace this year, slightly stronger than the 2.4-percent rate median forecast of her colleagues. That optimism allows her to view more than four rate hikes as appropriate, she said.
We are so lucky to have policy heads like her, watching over our coffins as they get tossed into shallow graves.
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Rates will be raised another 25bps in January.
Keep with the Dot Plot, although those things stick to my teeth.
The rise of the new Atlantis is underway as the ancient Phoenician strategy is underway. Fall of the empire is/was the plan.
Raise into declining economy – off to make some fermented brine (no vinegar) pickles
Her full speech on Sunday was even more bullish then the interview.
What she is telegraphing is that the Fed will continue to provide the banks with a back door bailout via reverse repos whilst our Chinese friends shovel their treasuries out the door.
I think the Banks love this rate hiking. They pass it off to the consumers, keep their operations low and they stand to make even more money in 2016. It’s great for them. So they don’t need much growth to really start making money as rates rise.
#1 industry that should benefit from this is Banks.
12 o’clock and all is well!
Loretta Mester is a pretty good name, though.