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Fed Voter Powell Turmoils Markets After "September" Comments
FOMC Voting member Jerome Powell has spooked markets this morning (though a glance at stocks impotence would not tell you that) with his comments that a "September rate hike is now 50-50," and that "The Fed would like to test a rate rise as soon as September." FX markets are turmoiling with the USD surging and bond markets are seeing Bunds/TSYs sold aggressively. Stocks shrugged in their "huh?" way initially but tumbled as Powell confirms 'mechanical'-sounding 1% rise per year in rates if the economy continues to grow as expected.
The reaction...
Further headlines...
- *POWELL: TEST TO RAISE RATES COULD BE SATISFIED AS SOON AS SEPT.
- *POWELL SAYS HIS FORECAST CALLS FOR RATE RISES IN SEPT., DEC.
- *POWELL SAYS ODDS FOR SEPT. RATE RISE IN 50-50 RANGE
- *POWELL: PATH OF RATES GOING FORWARD MORE IMPORTANT THAN LIFTOFF
- *POWELL EXPECTS PACE OF TIGHTENING ROUGHLY IN LINE WITH DOT PLOT
- *POWELL: FED AND MARKETS ARE GETTING INTO CLOSER ALIGNMENT
- *POWELL: DOLLAR IS STRONG BECAUSE U.S. ECONOMY IS STRONG
- *POWELL: THERE'S RISK UNEMPLOYMENT MAY FALL FASTER THAN FORECAST
And there's no risk...
- *POWELL SAYS SOME MARKET RISK HAS SHIFTED TO ASSET MANAGERS
- *POWELL: NOT CONCERNED HIGHER VOLATILITY WILL HARM ECONOMY
- *POWELL SAYS HE DOESN'T SEE A BUILD-UP OF AN ASSET BUBBLE
- *POWELL SAYS HE'S NOT PARTICULARLY TROUBLED BY EQUITY VALUATIONS
So Powell is disagreeing with Yellen on bubble-iciousness and appears more hawkish on rates that the market "read" into Yellen's remarks.
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All in a days work...
"POWELL: TEST TO RAISE RATES COULD BE SATISFIED AS SOON AS SEPT"
As soon as?? And what's the fucking test?? Nobody told me about a test. I would have studied harder if I knew a test was coming.
In short, that's all code for "not September". Which means I'm gonna owe Doc a sandwich.
Mr Powell can't answer the phone right now, he's busy covering his very profitable S&P futures short.
An ode to the comments of Powell
The markets are starting to growl
The bubble in lies
Is pricked with a rise
And bond vigilantes still prowl
50/50 are the odds people give when they don't want to be wrong.
Turmoil isn't a verb.
In english, any noun can be verbed. :-)
Yeah but that's right.
Turmoils is the plural
Turmoiled is the verb
We Englished some folks....
Of course. September 2085, that is. He just forgot to mention it ....
More jawboning, nothing more...
The Federal Reserve really only controls one thing, the federal reserve promissory note...
"Full Faith and Credit"...
but, greece kicked the can for a few days, so all is well and corporations are going to start spending on capex again and start hiring full time SKILLED labor.
Time to play Good cop, Bad cop with the markets.
you have to be a maniac or work in wall street to believe in this kind of BS with the economic backdrop we are experiencing.
GDP trending down, now even the FED admits growth will be sub 2% and yet we hear one of them say that "if economy continues to grow as expected".
i guess if you talk about it and CNBC, BBG, Reuters and Wall Street Journal publish it, then it must become reality.
the most corrupt market in history
Same old, same old: The lie has to be big enough (that is of utmost importance), and is has to be repeated often enough - then it will become reality for a majority of people, and you would be well advised not to controvert their sight ...
The Big Lie
The Big Lie is a propaganda technique whose invention is often falsely credited to Adolf Hitler (Hitler was not advocating the use of this technique but was in fact accusing Jews and Marxists of using it).
The basic idea is that the bigger a lie you tell, the more likely people will be to believe it, since it's difficult for them to accept that someone could tell a lie that huge with a straight face.
http://www.urbandictionary.com/define.php?term=The%20Big%20Lie
*POWELL SAYS HE'S NOT PARTICULARLY TROUBLED BY EQUITY VALUATIONS
(stupid or lying)
Neither, as he is part of the corrupt cabal. He isn't worried as it won't effect his wealth, but now everyone else on the other hand should be worried.
"spooked markets"...S&P futures moved 3 points. Really?
Bonds
Gold and Silver son, that was his objective and the fish took the bait! The cartel has been loading up on shorts, did you really think these liars were going to allow them to fail?
Growing as expected. Just like water levels in California resevoirs.
*POWELL SAYS HE DOESN'T SEE A BUILD-UP OF AN ASSET BUBBLE
Another to be filed under the section 'sub-prime is well contained' and 'stocks have reached a permanently high plateau' and 'an end to boom and bust'
50/50... lol, what a fucking news flash.
' voting member . . ' he must be someone Impotent.
Fuck fuck fuck shit shit shit
To me, this is just noise. With the JGB under 1%, Nikkei at 21K and the Yen in lockstep with the USD, markets are not going anywhere. If the FED should lose control, my guess is that it will show up in the Yen (and Euro) first.
50/50 is code for 'it aint going to happen'.
Powell is lying. Probably, to prevent the inflated US bond market from imploding. If you correct US GDP for real inflation, here are the GDP growth rates from 2011 to 2014: -6.2%, -6.5%,-6.5%, -4.1% resp.
Increasing rates in such an environment is plain suicide.
No rate normalization during my life time Bernanke
http://www.zerohedge.com/news/2015-05-29/inaccurate-statistics-and-threa...
Just another 'feeler' being put out by the talking heads at the Fed. Like a big lumbering fucking turtle - they stick their heads out to test the winds, then immediately withdraw. Fucking psychopaths.
I was taught that rates were raised to cool down the economy a tad.
Apparently I have missed something?
You need to unlearn that shit- it'll get you killed in today's world. Raising rates is now GOOD for the economy because they say so.
That was when growth was based on supply and demand, not print and spread.
Only an idiot doesn't see the Chinese markets in a bubble.
Now instead of a deflationary wave hitting via the commodity index only "it starts to spread" into the industrial reocovery as a whole.
Biggest problem with this is that Powell & Lacker are the only "hawks" around after Plosser/Fisher retirements, and they're milder versions. This is illustrated by this link to a "dove" ranking that compares the current Fed with the prior incarnation: http://www.businessinsider.com/fomc-hawks-vs-doves-in-2015-2014-12
(The fact that LaVorgna rates them a "3" probably means they're only a 1)
How do you "spook" an Algorithm.
Just say, "No."
Well considering the markets are nothing but the square root of -1, anything you imagine can spook an algo.
They are scared shitless on the PM's and doing anything to get the reset price down. They remain a hammer looking for a nail in the complex as they are out of ammo. No more GLD, no more vault gold just the flywheel and the East is hoovering it up at an amazing pace (both metals). Not a day goes by they don't hammer the price these days even in the face of the most bearish economic news since the crash.... The only thing that makes since is the vaults are empty.
Now this tool with another rate increase....did you see durable goods. LMAO. A new stooge with the same bunch of lies
As the saying goes, don't fight the FED, BS.
Heh... during my lifetime when they tap on the breaks they believe they are in control. Some how that never works to well. My guess they will be watching derivatives the best they can.
I am in the process of rolling out of all equities, taking profits to cash and then..... Treasuries and AU baby.
I live in Texas and cannot wait for the Republic of Texas to open Gold Bank, legislate reporting ALL real estate sales for true market value, legalization of at least medical pot and other choice Texas moves.. chuckle.
Be fun to see Trump build big damn wall and have Mexicans pay for it. But of course I am self medicating for chemo side effects.
Put all this wisdom in your pipe and smoke it!
The game continues with one lie after another. If they could only get the market to sell off by 20% so their bozy on Wall Street could buy cheaper, they would end the bullshit about a rate increase. It wont be in september or ever thats why they have resorted to talking about it!
It is already too late to 'test' a rate rise. We've been in recession since February, and things will be very obviously bad for a rate rise by September.
"if the economy continues to grow as expected"
There you have it.
Just because they lie every day doesn't mean you have to get used to it. They're LYING.
Hey, here comes the camp train...choo-choo! All aboard!