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Yellen's Contradictory Message On Upcoming Rate Hikes
Yellen, in an important sequence in her semiannual testimony to Congress, according to WSJ's Jon Hilsenrath, tipped her hand to the benefit of raising short-term interest rates sooner rather than later.
If the Fed waits much longer to raise rates - as some institutions like the IMF want it to do - it might be forced to move aggressively once it starts. However, if it moves sooner, that could allow it to proceed gradually and observe how the economy and markets respond.
"An advantage to beginning a little bit earlier is that we might have a more-gradual path of rate increases." A gradual path, she added, is a "prudent approach to take."
As Hilsenrath concludes, that adds weight to the argument the Fed might move rates for the first time in September, and explains why long-term bond yieldsd and stocks just rolled over...
So to summarize this outright inconsistency - The Fed (to a man or woman) swear up and down that all rate hikes will be slow and gradual and data dependent and yet here she is saying that unless they move sooner (rather than later) they may have to raise rates considerably more aggressively (but how does the Fed know what the data will be?)
On other words - The Fed already knows the lessons the Chinese just learned - once you lose control, it's all over!
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Of course they know what the data will be - this very website has been claiming for months that it's all goal-seeked!
Yellen’s testimony:
Humphrey-Dumphrey sat on a wall,
Humphrey-Dumphrey had a great fall.
Thank you and I’ll be glad to answer your questions, right after I put my Slimy Frog suit on. ;-)
Looney
BoC just lowered rates. Are CB's no longer working in conjunction? I call bullshit to the never ending rate hike that never comes.
I call bullshit on the rash of bots.gov commenting all down this thread. Someone has a messaging agenda.
Here is a way to do it. Raise rates. euro, yen and every other currency falls through the floor. Put everyone in US on SNAP and Medicaid. Cut wages and prices 99%. Cut all non-citizens from SNAP and Medicaid. Use negative inflation numbers to cut SNAP and Medicaid payments. Run balanced budget while rest of the world and non-citizens work their asses off keeping up the standard of living for citizens in the US. Similar to the Greece approach.
when pigs fly
In flocks.
this article should come down...nothing out of the ordinary was said
They just need to "kill bin laden" again and smack PMs down 30% on a Sunday night.
Translation:
"The sooner we raise rates by 0.25%, the sooner we can put them back to zero."
FED will raise rates in the 3rd quarter of 2000 and never. Now bring on QE4ever.
Wow, where I have heard that they were going to raise rates? How many points will that clip off the S&P? How much will this add to the deficit?
https://www.dice.com/jobs/detail/Penetration-Tester-Federal-Reserve-Bank...
I was fully expecting this job ad to say, "Will serve at the pleasure of Chair, Janet Yellen."
1. she crapped herself when 1 of the republicans walked her into a trap; he set-up her by talking about moving interest rates off 0. he followed that up by by uttering the term "negative rates" (he said "moving rates" ... didn't say which direction lol)
2. 1 of the republican women who just spoke asked her about our growing debt, ZIRP, and we need to be focused on the "long-term". she asked "chair yellen, after 7 years of this, when does it become 'long-term'"?
3. who would have thought the guy from the real world would bring the heat to a fed congressional hearing.
4. in her prepared testimony, cited potential for raising rates due to increased consumer spending (i guess she missed the retail sales # yesterday)
5. every dem to speak so far, asking what the fed could do to assist wealth inequality. if i didn't know better, id say they had a meeting to get on the same page.
Not for nothing but rates have already moved...long ago
Bitch is lying.
Doesn't matter what she says, it's a lie. She doesn't know what she's doing except she knows she is aiding criminals like Goldman Sachs. Beyond that prime directive none of them know what they're doing to the economy.
I can't figure out why it matters anymore. A hike of .125% or so is imho meaningless when the historical norm is over 5%.
"Then telling her friends what she says is one thing but what she will do is the opposite."
Of course she is lying if she's passing on the info of what the Fed is really deliberating about (QE4.)
"Listen, bitch. It's all about the economy, right?
Well...explain to me PRECISLELY how raising rates right now will help with that?"
She never once has.
I know EYE have...but yeah, she hasn't because she has marching orders and everything else is just bullshit I agree.
So do they:
- Raise rates and allow a 10% correction?
- 10% with a rapid downside trajectory?
- 15%?
- 20% and roll in the $$$Tanks?
- How do you walk a hair-trigger economic tightrope when it is on fire and make it to the other side?
Two step plan:
Don't yell fire on a burning tight rope full of people.
Quietly make your way to the exit.
My trading AI translated "contradictory message" into imminent equities sell-off and acted accordingly
The Fed needs to raise rates when least expected....at the next meeting July 28-29. http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Is Yellen pulls it off and raise the rates slowly, incrementally and safely, then what will happen to you crusade... zerohedge? can you pin point one thing that can be done to correct things?
I have a new problem for you to solve.. try that .. no one on quora even wants to touch that problem.
http://just-a-thought-from-thinair.blogspot.com/
Pimp your crack whore somewhere else asswipe.
Instead of hiking, you should first unwind your huge debt balance sheet and repay creditors...
Believe the opposite of Goldman's free lunch advice.
Hard to believe raising the rate to .25% or even .5% would cause panic on Wall Street....The fact that is does means we are living in Bizarro World...How did we let this happen? We've allowed the Elites/Politicians to sell us out without any resistance....
We allowed money printing and the resultant redistribution of wealth to redirect huge percentages of the economy into enterprises that are infeasible without the money printing, and must collapse.
You didn't think the recipients of the newly printed money spent it on all the same kinds of stuff as Main Street would, did you?
You didn't think that having 1/4 of all spending in real terms redirected through these elites via the printing press wouldn't hurt non-QE-dependent businesses in a compounding manner, while he helping QE and otherwise debt-dependent businesses, did you?
You didn't think that all those economic structures dependent on producing what Wall Street wants to spend free money on, would still be viable once the "free-money" was turned off, did you?
The FedRes is going to raise rates this fall, and begin the engineered collapse of the dollar by Zion into an SDR "backed" fiat currency. In this way they can maintain their plunder, even when the instrument of their plunder has died.
Liberty is a demand. Tyranny is submission..
yellen's job is to keep markets up and hand this mess off to the next president - and all the fraud and crime that is going on doesn't matter.
FUCK YOU YELLEN
Ms. Yellen, wait a minute there!
Did you just say that the United States FED has not raised rates becaue the IMF did not want them to?...and then beg dire consequences if you are not freed to do as you see fit, against the wishes of the IMF???
It sounded a whole lot like you just said, or at least very strongly implied, that foreign bankers control the US currency.
I still say that everyone has the rates hikes wrong and the size of them.It won't be like the past.I mean miniscule increases.