Posted on 02/14/2022 6:25:33 AM PST by Browns Ultra Fan
Call this “The running of the Bull(ard)s mouth.”
Federal Reserve Bank of St. Louis President James Bullard said he supports raising interest rates by a full percentage point by the start of July — including the first half-point hike since 2000 — in response to the hottest inflation in four decades.
“I’d like to see 100 basis points in the bag by July 1,” Bullard, a voter on monetary policy this year, said in an interview with Bloomberg News on Thursday. “I was already more hawkish but I have pulled up dramatically what I think the committee should do.”
Bullard’s plan involves spreading the increases over three meetings, shrinking the Fed’s balance sheet starting in the second quarter, and then deciding on the path of rates in the second half based on updated data. He said he was undecided on whether the March meeting should begin with 50 basis points, and would defer to Fed Chair Jerome Powell in leading the discussion. Powell, at a press conference in January, didn’t rule out the idea of such a move.
Bullard’s comments, along with the war drums along The Potomac about a Russian invasion of The Ukraine, are causing the 2-year Treasury yield to rise faster than the 10-year yield, causing the 10Y-2Y curve to crash.
What will The Fed decide at their emergency, closed-door meeting today? Nice transparency, Powell!
(Excerpt) Read more at confoundedinterest.net ...
The grifters at the FRB are looking for their piece of the pie as America is looted. basically advertising this hoping to get a big payoff to eventually make it a much smaller increase, it increase it at all.
Kinda wish this was from the “Bee”.
This is like trying to kill mosquitoes with a 50 Cal.........................
They ONLY control FED-based fiat paper “money”.
We’re rocketing now towards a time where the only real money is precious metals.
We’re screwed no matter what they do.
Hopefully they’re screwed too.
That’s OK, it was a “mostly peaceful” threat of a 1 point rate hike that cooked 1K points out of the DJIA in 2 days. I would have like to have heard Jamie Dimon’s call to Bullard (Bearard?) Market is not acting like this is over yet.
Reason dictates a 1/2 point hike per quarter until the fire is out.
People didn’t like it when Volker did it and they won’t like it now.
Markets will crash, billions lost.
Then something real can be built upon the ruins.
Looks like these ignorant people want to guarantee stagflation
Do it already.
Billions gained, billions lost. Make money in both directions...and so goes the wheel, round and round, over and over and over again. People say it will crash, great depression, ruins.... have not realized those things have been eliminated from the equation. It’s only a matter of how high and how low the market will go. sure there will be casualties but there is no end. The money makers have it rigged it so they know when to do what to make the most money. There will be no ruins, there will be no depression just a constant transfer of wealth.
Monetary tightening is LONG overdue.
Part of the problem is that monetary policy (what the Fed can do) is constrained by fiscal policy. That is, the government has been overspending so much that it is grossly distorting the economy. The Fed was trying to accommodate that spending with low interest rates, but eventually, that brings about inflation/stagflation.
Bullard’s is one vote out of nine. However with three board seats vacant the bank presidents currently have an outsized influence.
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