Fed’s Williams is Talking Nonsense Again

Fed’s Williams is out talking reckless again, ahead of Chair Yellen’s speech due today. The highlights are more of the same from a very dangerous and delusional Fed.

You want something actionable? Fear this. They are building consensus around the idea that inflation is the real threat. Apparently, 0.6% GDP growth means ‘we’re on track’ and ‘we’re chugging along’.

These are dangerous people and their actions are becoming less and less predictable.

“My view is essentially, let’s just stay on track. Let’s not get sidelined by the noise and distraction commentary can sometimes cause.”

“We’re not quite where I’d like us to be, but recent developments have been very encouraging and add to my confidence that we’re on course to reach our (inflation) goal,” he said, citing an uptick in oil prices and a stabilizing dollar.

Overall, the U.S. economy “keeps chugging ahead,” he said.

“The last few months have actually been looking really good on CPI and PCE prices and I do want that to continue,” he said during an audience Q&A session.

“If it continues for the next few months, I will be pushing forward my inflation forecasts,” Williams said.

“There is some upside risk that we’ll hit our inflation target sooner.”

“I don’t see a looming global crisis,” Williams said, adding that he continues to think China will avoid a hard landing.

If the U.S. economy performs as well as it did last year, it will be able to handle steady interest rate increases in 2016, Williams said.

“If we have inflation moving clearly towards 2 percent, if the U.S. economy continues to improve the way it did last year…I think the economy could easily handle two or more (rate) increases this year,” he told reporters.

Should Yellen mirror this refuse, I expect markets will take a material turn for the worse, as this is extremely hawkish rhetoric.