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Bill Dudley Says Fed "Still Likely To Start Raising Rates This Year"
Just in case there was some confusion how to read today's blistering jobs data, here comes NY Fed's head and former Goldmanite with the explanation:
- DUDLEY SAYS FED STILL LIKELY TO START RAISING RATES THIS YEAR
Some of his other comments via Bloomberg (his full speech can be found here)
- “The appropriate stance of monetary policy will be influenced by how financial market conditions respond to the Federal Reserve’s actions,” Dudley said in text of speech in Minneapolis
- If conditions tighten sharply, Fed is likely to proceed more slowly; officials would move more quickly under opposite scenario
- “We will adjust the policy stance to support the financial market conditions that we deem are most consistent with our employment and inflation objectives”
- Level of real short-term rates consistent with neutral policy seems “considerably lower” than in past, likely to remain lower than normal in future
- Large balance sheet shouldn’t hurt Fed’s ability to lift fed funds rate, yet liftoff “may not go so smoothly in terms of the impact on financial asset prices”
- Timing of any FOMC decision will still be based on incoming data
- Growth should pick up “somewhat” for rest of yr; uncertainty remains on whether it will lead to further labor mkt improvement
- Some forces restraining growth are likely to fade
- There’s “plenty of room” for more gains in residential investment
- Consumer spending should grow if households become more confident about their finances
- 2Q rebound appears to be “relatively muted”
- 1Q contraction came from “mix of factors”; “seasonal adjustment issues” probably played some role
- Today’s payroll data for May shows continued progress toward full employment; “there is still some ways to go”
- Unclear why productivity growth has slowed; its future path will be important for employment outlook
- Uncertain whether there will be more gains in labor mkt this yr
- More confident medium-term inflation will return to 2%; resource utilization should increase; impacts of lower energy prices, firmer USD have stabilized or partially reversed
- Downside risk is that wage growth remains subdued; trade sector looks likely to be drag for rest of yr; USD is still more than 10% higher than yr ago
- Would support start of policy normalization this yr if labor mkt continues to improve, inflation expectations stay well- anchored
- Sees “smooth” liftoff in terms of Fed’s ability to push fed funds higher; financial mkt reaction less clear
- Fed could alter level of IOER, ON/RRP and/or spread between two as needed to move fed funds rate into desired range
- Likely to be “some turbulence” in mkts at onset of normalization
- Any confidence band around FOMC’s dots would probably be “very wide” given uncertainty in outlook, “loose” link between fed funds rate and mkt conditions
As for the market:
- Likely to be “some turbulence” in markets at onset of normalization
Aka, the same warnings as Mario Draghi gave on Wednesday sending Bunds into a tailspin.
His comments initially pushed futures to the lowest since this morning's furious ramp to green...
... but since then ES has managed to rebound modestly and is now unchanged since the speech because it is clear that the Fed is just as clueless as everyone else what to do.
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trotted him out just in time to prevent another down day on a friday....
fuckiing lyin ass mother fucker....
DEATH TO THE MONEYCHANGERS.
They just keep playing this good douche, bad douche routine
only 24 more points to go til the Dow reaches yet again on bullshit GREEN PASTURES!!!!!!
Like the sign in the tavern said: Free beer tomorrow.
Dudley you jackass.
The bond market is raising rates not the Fed.
We need money reform not more chatter from this failed institution.
The only question you should be asking yourself is, what will be the results if they do?
Rates are going up now with or without the Fed and the Fed's bubbles will pop.
That is why Greenspan, Fischer, Lindsey are getting more honest.
Monetary reform and debt write-down is needed.
Now that's more than just a possibility. When they lose control,,, make it look like it's their policy.
The Fed will never voluntarily raise rates just like Squid bankers never voluntarily jump out of windows.
-
Weren't they supposed to start raising in June?
Maybe they are going Greek and they are going to bundle all the rate hikes into one big one at the end of the year?
pods
How can you taper a ponzi-scheme?
You hand it off to an ever-expanding pool of greater fools.
What's it been now, 7 years now since the FED raised rates?
It was his turn to announce the official party line. 25 bp would be very minimal but highly unlikely since it would really screw up bonds and especially derivatives, so we'll get plenty of sound and fury leading to nothing significant....
XOXOXOXOXO
-Clueless
knukles,
You have a serial junker as a fan.
Somebody doent get your sense of humor.
I find it hillarious.
Keep up the good work
BUT, BUT, BUT ... didn't janet's evil(er) twin advise against us doing that yesterday???
Fuck Dudley. He is an inveterate liar and so perfect for the Fed.
The Fed has to lie continuously to keep the US dollar strong even as US debt and unfunded liabilities exceed $1,400,000 per taxpayer.
No rate normalization in my lifetime Bernanke
The money criminal has spoken. Now dance.
Then raise the rates and quit jawboning. Fck Stick.
Fed to old ouiji board laggard we gave you qe2 to save your ass and you blew it. We will raise rates and save our ass . Fuk the eu
Drudge is down, can't remember the last time that has happened.
I've never seen DRUDGE down until today.
Somebody front running suptin
A day without Drudge is a day without the Zionista's POV.
Fuck Drudge!
Drudge has turned into an online National Enquirer. Mostly useless gossip and politically correct freaks.
B.S. Dudley and he knows it.
The FED cannot raise interest rates at all or the whole ponzi scheme inplodes.
So they are going to send out FED governors every so ofter to do what they do best - LIE.
Lip service about possibly raising rates is all the FED can do.
The FED is trapped.
Can they not do a token small raise in rates just to "prove" that they still can do it? A last ditch bluff to send a message that the economy is finally doing "well" enough to handle a rate increase and that everything is under control? Anything to keep the illusion alive, keep kicking the can down the road.
What lies! Dudley is full of crap.
These guys lie with a strait face.
Notice they keep pushing the date out?
Yes, of course they do. Their statements have nothing to do with reality and only with the manipulation and conturing of perceptions.
Only in the most dystopian of dystopian worlds would you be asked to believe that everything is going to be alright when every clear fact says otherwise. Before this is over, the Federal Reserve will be discredited and dismantled...
http://www.globaldeflationnews.com/the-creature-from-jekyll-island-the-e...
USSR style crappy nonsense and everyone knows it. Now everyone just has to realise it; our heroes, our saviours, our authorities ... don't understand anything! btw, Got gold?
What's the hurry?
/sarc
They are on a steep hill in SECOND with manual transmissoin.... Cannot go up and trying not to go downhill - the clutch is smoking like a MOFO
Some have said that when they start, the follow-on hikes will come much faster than anyone expects...
DUDLEY SAYS WILL SPOUT BULLSHIT UNTIL WWIII
come on Dudley Do right.
https://www.youtube.com/watch?v=vi9pDPLqUZU
Dudley's remarks demonstrate that he is, indeed, clueless. No one seems to be aware that the presence of high levels of excess reserves of commercial banks at the Fed will make it difficult, if not impossible, for the Fed to "influence" short term rates by means of its traditional open market operations. In a recent essay, David Stockman pointed out that, in the early thirties, the Fed made a big increase in the level of required reserves of commercial banks in order to regain control of short term interest rates.
Dudley, like most parasites, is going to get just he's asking for. (insider trading)