Posted on 09/18/2015 3:22:43 PM PDT by bestintxas
The market is calling the Fed’s bluff on raising interest rates.
The Fed’s September meeting has come and gone, and interest rates remain at zero.
The reasoning behind the Fed’s decision is sound. With emerging market economies in various states of disarray, global markets have responded by keeping energy prices low and the dollar strong. These forces have conspired to keep inflation here at home quite low. Federal Open Market Committee members’ median projection of inflation for 2015 is just 0.4%, well below it’s 2% target, which it has failed to reach for close to a decade.
(Excerpt) Read more at fortune.com ...
We need true leadership and confidence, and I sure do not see it in her.
Inflation is low? I don’t think so!!!
was she a-pointed by obama?
She was picked to safeguard the santity and privacy of the “Fed.” She is nothing more that a warrior for the palace guard. Remember her plea of “don’t audit me!” ?
The government says that inflation is low. Who are we, us mere mortals, to question that?
Of course she was.
Yellen is a died in the wool leftist like Kagen.
After yesterday I am convinced she will not raise rates until after the 2016 election. Why chance hurting Obama and the Dem nominee. Save the bubble pooping for the possible GOP president.
How can anyone who does this job be considered better or worse than anyone else who has done the job? How can anyone be considered competent or incompetent to do this job?
There is little to be done.
This is a purely ceremonial job.
Making a big deal about the actions of the current Fed chair only makes it seem as if this is an important and meaningful job.
All Republican Candidates should be pointing out how the Fed can’t raise rates because Democrat Economic Policies don’t work.
We can only hope ‘Recovery Summer’ Joe Biden gets in to emphasis this.
And the weak “global economy” excuse given doesn’t address the US economy use to lead the whole world.
If Janet Yellen doesn’t raise interest rates now, even by one-eighth of a point, when will she ever do so?
There are always excuses not to raise interest rates, but if the economy is doing even a fraction as well as the Obama administration continues to proclaim, there would be many reasons to raise them. So why can’t she identify any?
From Obama’s and the Democrats’ perspectives, the best thing the Fed can do is avoid taking even the most minuscule risk of tipping the economy into a recession during the coming year.
It will be Obama’s last year in office, when the last thing he would want is having a recession blamed on him. And the Democratic presidential nominee would also have to answer for a Democratic recession.
So, since Janet Yellen seems to be basing her Fed decisions on what’s best for the Democrats, maybe we won’t see another interest-rate hike until a Republican enters the White House.
In a word; no.
Bet on this. The fed is going to sweeten up the economy any way they can in the election year.
The Feral Government will do all they can to keep it rat and very likely will do so without a miracle of a turn of the sheeple to reason.
Bet on the first of these two items and don’t bet against the second.
[After yesterday I am convinced she will not raise rates until after the 2016 election. Why chance hurting Obama and the Dem nominee. Save the bubble pooping for the possible GOP president.]
^^^ This I’ve said all along the bubble will pop if it looks like a conservative (or Trump) will win the WH.
Who thinks the Fed was ever competent?
“Inflation is low? I don’t think so!!!”
Inflation is low if you don’t
1) buy groceries
2) use medical care
3) pay for school tuition
4) use utilities at your home
5) pay taxes
6) use services (car repair, plumber, electrician)
7) rent an apartment or house
8) purchase insurance
9) travel (hotel, eating out, transportation, admissions)
10) die
“(Does anyone think this woman is competent?)”
My wife, who was the lead RN in a busy FP practice, developed excellent skills in detecting depression in new and established patients, watched this loser for about 2 minutes. She said Yellen an antidepressant and a therapist.
She, also, proof read my MBA thesis. Doing that, she oded on the Peter’s Principle, about people reaching one’s level of competence to become a good diagnostic re in competence. She said Yellen passed that level a long time ago.
Don’t even get me started on the electric bill. At least half the bill consists of taxes and fees!
BINGO!!! Exactly what I have been thinking!
“It seems that the only two things the Fed can do is change interest rates and make vague statements about future planned changes to interest rates.”
That is all they do?
what about the trillions in new currency they throw around?
YOu don’t think that is significant?
But the MSM doesn't talk about this, so evidently it isn't all that important. Just like they don't talk about the real CPI or the real unemployment rate or the strange fact that the national debt clock has frozen again.
If these were important things then certainly the intelligent graduates of Harvard and Yale who run the MSM would report these facts to us.
So I stick with my original statement: The only thing the Fed does that is of any importance is modify the base interest rate and hint at future changes to the interest rate.
the us treasury prints it, but the Feds distribute it,
How much is distributed is the key. One can print as much as one wants, but if it does not see the light of day, there is no harm done.
The trillions printed up severely dilute the currency of those already possessing money, and is a shell game.
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