The biggest shocker in today's Fed announcement is not that the Fed did not hike: that was telegraphed far away. It is highlighted on the chart below in red: for the first time ever, one FOMC predicts negative rates in 2015 and 2016. Was it permadove Kocherlakota: probably not, he is out next year...
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In retrospect, this too should come as no surprise: over the weekend we asked if "Yellen About To Shock Everyone: Goldman Says The "Fed Should Think About Easing [3]." The lack of a hike was not a shock, but the negative dot, oh yes.
And earlier today we hinted at just this: NIRP:
Q. Can an ON RRP operation have a negative stopout rate?
A. Yes
http://t.co/hRvY3Lx9eG [4]
— zerohedge (@zerohedge) September 17, 2015 [5]
So: instead of QE4 - forget hikes - is the Fed going to shock us with NIRP in the coming months?
