At this point, the Fed has to keep the rate hikes going. If they back off the minuscule hike they applied, they look like they don't really know what is going on, or the hike was to showcase that a gamed economy was "improving" and needed to be reined in (gotta throttle down that 0.1% growth).
We agree that this is the main reason for rate hikes of last Dec. and the future but political pressure and 'what people think' have no bearing here --Yellen's an idiot for thinking it does. Her job is (supposed to be) monetary policy. If there is inflation then she hikes rates to reign in the money supply. Inflation is way below the 2% target --and that 2% is supposed to be a target not a limit.
Pardon me while I breath into a paper bag for a while....
That’s the rub. The Fed knows the economy is in the crapper and has been for the last eight years. Yet el-presidente’ and the department of lies, eh Labor keep trotting out numbers saying all is well 5% unemployment and the sycophant groupies posing as journalists eagerly bleat out verbatim elpresidente’s proclamations on the economy.
So what’s a Fed chairman to do? Rile el-presidente’ and risk his wrath where at the least he removes your or at the worst decides he knows best and takes over the Federal Reserve, yes he is that arrogant and power hungry or try play along with the lie to the point where you pretend the economy is peachy and start the interest rate increases like all is well, knowing it’s a disaster.
I predict they dither with maybe one more increase in the rate and then do nothing until after the election in an attempt to hold things together until to get the witch elected, then it hits the fan.