Yellen Says Negative Rates On The Table "If Outlook Worsened"

As the market now diligently calculates the suddenly surging odds of a December rate hike, here's Yellen with a preview of what will happen once the rate hike cycle is aborted...

• YELLEN SAYS IF OUTLOOK WORSENED FED MIGHT WEIGH NEGATIVE RATES
• YELLEN SAYS NEGATIVE RATES COULD HELP ENCOURAGE BANKS TO LEND

... just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs.

The good news:

• YELLEN SAYS SHE DOESN'T SEE NEED FOR NEGATIVE RATES NOW
• YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT

Because when have the Fed's forecasts before ever been wrong.

Comments

[aubreyfarmer]

Carlin was right.  It is one big club and we aren't a part of it.  He should have said it is a Jewopoly and only the Jew bankers and their like are allowed to win.  Everyone else gets to sit down and hand over all of their wealth.

[brokenspoke]

Why can't President Trump cut a better deal for us with the FED