Posted on 06/18/2021 5:46:41 PM PDT by BenLurkin
Kashkari’s remarks show he’s in a decided minority in an increasingly hawkish Fed, which on Wednesday wrapped up a two-day meeting with an unexpected result: with inflation on the rise, most Fed policymakers now see a case for starting interest rate hikes sooner.
Just three months earlier the clear majority of policymakers favored no change to the current level of borrowing costs; on Wednesday, the central bank's quarterly summary of economic projections (SEP) showed 11 of 18 Fed policymakers penciling in at least two quarter-percentage-point rate increases by the end of 2023.
...
At least some of Kashkari's colleagues may already be there, though, if the "dot plot" of Fed rate-hike expectations, published as part of the SEP, are any guide. They show at least seven policymakers expect a liftoff in rates next year, a number that includes St. Louis Fed President James Bullard.
"It was meant to be a tool providing dovish forward guidance," Kashkari said of the "dot plot."
“It ended up being a tool that provided hawkish forward guidance ... I continue to think we ought to just kill the ‘dot plot.’”
(Excerpt) Read more at reuters.com ...
This Loon is a Never Trumper globalist monster
When there’s a demwit in power, they talk about raising rates, then the market gets scared, then the feddies come to the mic and say “not for at least 3 more years”.
W/ DJT in office, they couldn’t wait to raise rates frequently. They wanted to choke the stoke.
As soon as rates go up, it starts the decline in the ability for the government to spend. And it won’t take long before debt service consumes the Federal Budget.
That will be fun to watch. Not.
100%
They know they cant hike the rates.
Its like the Mob whish used to go out and clip anyone who didnt pay up. Then they quit doing that because if the guy was making any payments at all, they were getting money and the guy kept getting deeper into them because he couldnt make the interest payments they demanded.
Eventually, they would clip him after they sucked him dry and he couldnt pay anything at all.
There is a good chance that the financial system does not last that long.
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