Fed “forward guidance” blows too much smoke

Reuters ^ | September 22, 2016 | Gina Chon

[expat_panama]

The U.S. Federal Reserve is still enabling financial markets. The central bank on Wednesday again declined to raise rates, despite recent remarks from Chair Janet Yellen suggesting an increase was becoming more likely. The Fed counts talking to the market – what it calls giving “forward guidance” – as one of its tools, but the story has changed so often that Yellen and her colleagues might do better being less chatty.

The Fed initially signaled four rate hikes in 2016 after raising the range for the federal funds rate to 0.25 percent to 0.5 percent last December...

...the U.S. economy is in better shape than the rest of the world...

...The Fed’s latest forecast shows just one increase this year. In its statement, the bank said the case for higher rates was stronger but it wanted to wait for more evidence of progress. The central bank’s story morphed once again. No wonder Third Point hedge-fund founder Dan Loeb, speaking at a Reuters Newsmaker event earlier on Wednesday, argued that loose monetary policy was like a drug and “we must take the crack pipe away.”

[CincyRichieRich]

Yellen is getting paid to be a figure head...nothing more.I have no respect for the Fed, as it was founded on corruption as it’s premise, under the guise of doing good for us. Thieves and robbers. The PhD morons who work there all tow the line with exception of a few, but their voices are usually squashed to go along with the dog and pony show. I couldn’t sleep at night with such a job...getting $250k/yr to lie with statistics. Ugh.