This page has been archived and commenting is disabled.

Fed Mouthpiece Hilsenrath Confirms Fed "Cautious" But "Unalarmed" About Overseas Turmoil

Tyler Durden's picture




 

While a skim of the FOMC Minutes suggest the committee is balanced on when (or if) to raise rates, WSJ's Jon Hilsenrath has just provided some more color confirming that "Fed officials are cautious about overseas developments but appear unalarmed," suggesting their confident economic growth forecasts point to a September rate hike (unless the whole world collapses obviously).

 

As The Wall Street Journal reports,

Worries about global turbulence and soft spots in the domestic economy weighed on Federal Reserve officials when they gathered at their June policy meeting, trepidations that could cause them to wait longer before raising short-term interest rates increases in the months ahead.

 

“While participants generally saw the risks to their projections of economic activity and the labor market as balanced, they gave a number of reasons to be cautious in assessing the outlook,” the Fed said in minutes of its June 16-17 policy meeting, released Wednesday with its regular three-week lag.

But many are confident...

The central bank effectively left its options open for now. Though the global outlook is uncertain and shifting, officials pointed to signs of progress in the domestic economy as reason to begin raising U.S. rates this year. Several had concluded that slack in the U.S. labor market had already disappeared, while others saw it being gone by year-end.

 

“The ongoing rise in labor demand appeared to have begun to result in a firming of wage increases,” the minutes said.

 

Moreover, some worried that if the Fed waits too long before raising rates, it might need to move abruptly later, which could cause financial instability. Some participants viewed the economic conditions for increasing the target range for the federal funds rate as having been met or were confident that they would be met shortly.

And as Hilsenrath concludes,

For now, Fed officials are cautious about overseas developments but appear unalarmed.

Finally, we have SF Fed Williams recent comments which seem indblowing...

“I visited China recently, and I arrived fully cognizant of the concerns people highlight—slower growth, the unsustainability of the current export-driven model, debt buildup, bubbles in the equity and housing markets, the risk of falling investment, and the overall international implications of those risks,” John Williams, president of the Federal Reserve Bank of San Francisco, said in a speech in Los Angeles Wednesday. “But I have to say that, after talking to officials and academics there, I was a lot less concerned about China’s near-term economic outlook on my return flight than I was heading over.”

*  *  *

Well we are just glad he spoke to academics and policy makers...

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 07/08/2015 - 14:21 | 6286339 One And Only
One And Only's picture

Yeah rate hike!

Due to software glitch markets never reopen. Have a nice day.

Wed, 07/08/2015 - 14:24 | 6286345 El Oregonian
El Oregonian's picture

Wallstreet 3.0 coming soon. (2.0 was instituted in 2008).

A newer, better version for your purchasing pleasure...

Wed, 07/08/2015 - 14:27 | 6286373 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Cautious my ass....I'm sure it's freak out time

Wed, 07/08/2015 - 14:34 | 6286405 y3maxx
y3maxx's picture

Payback by China .... committed cyberwarfare vs wall street today

 

Opening salvos...prelude to W W #3

Wed, 07/08/2015 - 14:40 | 6286427 ZerOhead
ZerOhead's picture

Opening salvos will most assuredly be the prelude to NWO

Wed, 07/08/2015 - 14:36 | 6286409 Pool Shark
Pool Shark's picture

 

 

I guess it's possible the Fed could raise rates in September...

Only if US markets crash so badly before than that all trading is halted; then it wouldn't actually matter if they raised rates.

 

That's the only scenario I can think of where the Fed raises...

 

[And there we go: S&P just took-out the lows of the day. GERONIMOOOOOOOOOOO!!!!!!]

 

Wed, 07/08/2015 - 16:34 | 6287090 brucekeller
brucekeller's picture

If it's like the current trends, you'll have to click on one stock quote to view the next stock quote, and so on. No lists. All ads.

Wed, 07/08/2015 - 14:21 | 6286342 Spungo
Spungo's picture

We can't raise rates because a butterfly in China flapped its wings.

Wed, 07/08/2015 - 14:22 | 6286343 Dr. Engali
Dr. Engali's picture

Allow me to summarize:

 

The fed heads are fucking retarded and they don't give a rat's ass how they fuck you over as long as their owners get your fair share of the pie.

Wed, 07/08/2015 - 14:31 | 6286399 negative rates
negative rates's picture

You forgot to start with, The Fed, always wrong, but never in doubt. If you had you would not have needed to curse so much.

Wed, 07/08/2015 - 14:22 | 6286352 astoriajoe
astoriajoe's picture

or do you mean, shitting bricks?

Wed, 07/08/2015 - 14:33 | 6286408 madcows
madcows's picture

"sorry.  shitting rocks."

Wed, 07/08/2015 - 14:23 | 6286354 Squid Viscous
Squid Viscous's picture

If they raise in Sept I will "keep kosher" for a year...

Wed, 07/08/2015 - 14:23 | 6286357 Bastiat
Bastiat's picture

Translation:  they are struggling for sphincter control.

Wed, 07/08/2015 - 14:24 | 6286358 TeamDepends
TeamDepends's picture

Can't wait for the turmoil to arrive here so we can rub it in the faces of the anti-preppers, anti-goldbugs, keynesians, and progressives. They so richly deserve a good hard verbal beat down.

Wed, 07/08/2015 - 14:53 | 6286512 Squid Viscous
Squid Viscous's picture

why stop there?

Wed, 07/08/2015 - 16:07 | 6286942 Shaznardickleze...
Shaznardickleze the Doon's picture

Verbal beat down? They'll be eating themselves to survive. It will be a Amazing and horrifying depends on where you've placed your chips the last 7 years.

Wed, 07/08/2015 - 14:24 | 6286363 shanearthur
shanearthur's picture

Fed Minutes: "Let the markets eat cake!"

Wed, 07/08/2015 - 14:26 | 6286368 RealityCheque
RealityCheque's picture

Panicked, shitting their pants, pissing themselves with fear, stacking personal gold hand over fist -- yes.

But not alarmed, certainly not alarmed.

Wed, 07/08/2015 - 14:28 | 6286385 Arnold
Arnold's picture

Comatose on the outside, psychotropic drugs on the inside.

Wed, 07/08/2015 - 14:27 | 6286376 Spaceman Spiff
Spaceman Spiff's picture

Figured the Chinese drop and its affect on our market could be an opening for QE4...

Wed, 07/08/2015 - 14:27 | 6286377 Yancey Ward
Yancey Ward's picture

It is contained.  I look forward to Hilsenrath's article telling us whether or not Yellen waxes regularly.

Wed, 07/08/2015 - 14:59 | 6286378 nakki
nakki's picture

But I have to say that, after talking to officials and academics there, I was a lot less concerned about China’s near-term economic outlook on my return flight than I was heading over.”

Well that makes me feel so much better. More "experts" and academics who's lives depend on regurgitating government propaganda.  Perhaps this was before the media ban on the term "correction" and the ban on hedge funds selling.

Rate hike in the third quarter of 2000 never. 

 

Wed, 07/08/2015 - 14:29 | 6286391 aliki
aliki's picture

they were "concerned" about falling stock prices but pointed out japan & china as outperformers. im guessing about 15% higher on japan and 30% higher on china. sounds to me like they have 2 more excuses to add to the quiver.

Wed, 07/08/2015 - 14:31 | 6286392 Tinky
Tinky's picture

John Williams: "But I have to say that, after talking to officials and academics there, I was a lot less concerned about China’s near-term economic outlook on my return flight than I was heading over." 

Reporter: "So, did you promptly pick up the phone and call your stock broker and instruct him to buy stocks in Chinese companies?"

John Williams: "Look, I may be dumb, and, as it happens, deeply dishonest, but I ain't stupid." 

 

Wed, 07/08/2015 - 14:33 | 6286412 thamnosma
thamnosma's picture

Labor demand?  Increasing wages?  What exactly is booming in the American economy?  Why are more and more people "giving up" and not being counted?  Doesn't any friggin journalist ask the Fed that question?

Wed, 07/08/2015 - 15:13 | 6286644 nakki
nakki's picture

Journalist, that's funny.

Wed, 07/08/2015 - 16:25 | 6287050 Shaznardickleze...
Shaznardickleze the Doon's picture

You mean "embedded reporter"

Wed, 07/08/2015 - 14:38 | 6286432 Mike Honcho
Mike Honcho's picture

Almost about ready to consider making a decision, stand by folks.

Wed, 07/08/2015 - 14:38 | 6286434 Goldbugger
Goldbugger's picture

FED unalarmed and sleeping at the wheel.

 

https://www.youtube.com/watch?v=dXPLhE_z57M

 

Wed, 07/08/2015 - 14:52 | 6286507 The Delicate Genius
The Delicate Genius's picture

the Fed will do what is best for its owners.

Wed, 07/08/2015 - 14:55 | 6286523 TheAntiProgressive
TheAntiProgressive's picture

The same, same people "not concerned" with bubbles or mis allocation of capital.

Wed, 07/08/2015 - 15:18 | 6286662 PleasedToMeatYou
PleasedToMeatYou's picture

"Fed 'Cautious' But 'Unalarmed'"  (The subprime market is contained.)

Oh man, now we know this is the big one. 

Wed, 07/08/2015 - 16:02 | 6286925 DavidC
DavidC's picture

"(unless the whole world collapses obviously)"...

Which it will as soon as the Fed raises, even by 10bp.

DavidC

Wed, 07/08/2015 - 16:23 | 6287034 venturen
venturen's picture

wonder if Hilsenrath, Yellen, Bernanke will be imprison when thel RICO charges finally break the StreetMafia! 

Wed, 07/08/2015 - 16:55 | 6287199 Squid Viscous
Squid Viscous's picture

they will flee to Tel Aviv, kosher Pina Coladas for all...

Wed, 07/08/2015 - 16:33 | 6287085 Herdee
Herdee's picture

Just plain stupid is more like it.Look at their track record,it's abpout as good as the record of the IMF and all the morons there that have destroyed most African Countries.Real basturds these lowlife scum.

Do NOT follow this link or you will be banned from the site!