Posted on 10/03/2014 7:24:21 PM PDT by Citizen Zed
The hawks are retiring.
Dallas Fed President Richard Fisher and Philadelphia Fed President Charles Plosser—two of the three most hawkish governors—will be stepping down in 2015 and will most likely be replaced by more dovish appointees by President Obama. That will leave Jeffrey Lacker as the last of the reliable hawks.
Bottom line: The Fed will not be tilting in a more hawkish direction any time soon.
Charles Lewis Sizemore, CFA, is the chief investment officer of the investment firm Sizemore Capital Management.
(Excerpt) Read more at forbes.com ...
In other news: foxes run henhouse.
Because the numbers are a lie???
Inflation bump!
I don’t know how interest rates hike under any circumstance. Most of the $17+ trillion debt is financed short term at an average of around 2.5%. Even at such low figures, the annual interest expense is over $400 billion. If interest rates are allowed to rise, the annual interest expense will be over $1 trillion in short order. We cannot afford such a drag.
The issue is i believe that rates will at some point move on their own. I totally agree with what you say and have said the same since QE1. Its a trap right? Its false feel good. It basically postpones problems rather than curing them. But back to my opening statement. Market forces will at some point do it for them so the belief is its far better to be in control of the process.
That being said one has to wonder what the real thoughts are of the governors. These are pretty smart people regardless of their bent and the sheer size of the debt and the potential for it to literally eat away at the governments income is a pretty scary proposition.
BTW, someone noted on another thread that if the participation rate was what it was in 2008, the unemployment rate would still be 8.2%. Does anyone have links to the reports that show that.
If a Republican were to win the White House in ‘16, it’s scary to think about all the crap he will inherit.
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