Posted on 11/18/2016 2:57:09 AM PST by expat_panama
Federal Reserve Chairwoman Janet Yellen reiterated Thursday that the case for an interest rate hike has strengthened and said that it would be "appropriate relatively soon," reinforcing expectations for an increase at next month's policy meeting.
Yellen's testimony before the Joint Economic Committee of Congress was her first major comments since the election of Donald Trump, who has has criticized the Fed chief's actions. Yellen said she expects to serve out her full term and cautioned against reversing financial reforms.
Yellen said in her testimony: "I expect economic growth to continue at a moderate pace sufficient to generate some further strengthening in labor market conditions and a return of inflation to the Committee's 2%...
...economic data were strong. Initial jobless claims fell last week... ...CPI climbed 1.6%, the most in two years. Core inflation was 2.1%.
IBD'S TAKE: Financial stocks are in great shape right now. Here's why you shouldn't buy bank stocks right now.
Yellen added that there are risks to delaying tightening...
...Trump had criticized the Fed during the campaign, claiming it was acting in a "political" fashion. He made it clear he won't nominate Yellen for another term.
"When her time is up I would most likely replace," Trump said.
Trump has vowed to repeal the Dodd-Frank law, but Yellen backed many of the reforms in that sweeping financial regulation overhaul: "I wouldn't want to see the clock back turned back on those."
More broadly, Yellen said the Fed would watch what Congress does. With Trump proposing big tax cuts and infrastructure spending, the resulting boost to economic growth and inflation would take the pressure off the Fed to provide monetary stimulus...
(Excerpt) Read more at investors.com ...
“Now we will see the effects of what doubling the debt does.”
There is a natural market price for money, just like everything else. Interest rates (at least for the big boys and mortgage seekers) are far too low, and the economy will be distorted until they find that natural level.
The problem is that we have built up a $20T tab that we have to keep rolling over because we can’t pay it off. The carrying costs are barely manageable at current super low rates. Go to realistic rates and financing the debt will immediately become the largest budget line-item, crowding out a lot of other things. I think we should take our medicine and let rates find their own level, but it will be bitter medicine indeed. It will send the economy into a tail-spin and virtually guarantee that Trump will be a one term president. Then, in time, things will get better.
Yes, exactly.
” I think we should take our medicine and let rates find their own level, but it will be bitter medicine indeed. It will send the economy into a tail-spin and virtually guarantee that Trump will be a one term president. Then, in time, things will get better.”
There is another alternative. IF (and this is only possible under Trump) our government begins to spend less than comes in to the Treasury in taxes and interest rates are higher we can buy back some of our outstanding debt at a discount. Retiring old debt at a discount combined with no new additional debt is a game changer.
< Several on here called it saying she wouldn’t raise rates until Trump was POTUS. >
And some of us TOOK REAL ACTION by buying when rates were low. Let the Socialist Federal Reserve raise rates to the sky.
We put our money where our mouth is. Around 3% is the Fed’s ill gotten cut. That is a HUGE amount of free money for playing Money Changer, moving paper around.
About 3 times the U.S. banking pedulum swings public to private. Hopefully Trump can swing it back to public.
Trump you must PULL A KENNEDY! Issue U.S. notes!
Red seal dollar bills! A sign of distress!
however there must be evidence for collusion beyond a reasonable doubt>>>>>>>>>>>>>>>>>>
Enter Julian Assange? :-)
LEGALIZE MONEY
Allow alternate money like the Texas Dollar,
the California Dollar,
or the North Dakota dollar who have a stable bank already.
The Federal Reserve is unstable.
FAKE DEBT
The $20 trillion dollars is Fake Debt that does not have to be paid. Issue Red Seal dollars.
INVOLUNTARY
Involuntary debt does not have to be paid. Issue Red Seal dollars.
Spend less than we take in - what a concept!
From your lips to God’s ears. More likely, because more politically palatable, is inflating a lot of the debt away.
I like what you say, but how is the debt involuntary? Our elected officials spent the money, and since they are our legal representatives, we did, in a sense voluntarily since we continued to re-elect them. Defaulting on the debt may turn out to be the least bad alternative. The debt would go away and no one would lend us any more money for a long time. New currency would undoubtedly be part of the mix. So, as I see it, we pretty much agree, except about the debt being involuntary and fake. It, unfortunately, is all too real.
Wow, you are quite the crackpot! You go girl!
>
FAKE DEBT
The $20 trillion dollars is Fake Debt that does not have to be paid. Issue Red Seal dollars.
INVOLUNTARY
Involuntary debt does not have to be paid. Issue Red Seal dollars.
>
Sorry, FRiends. IMO, you’re off by a factor of ~10...The $20T+ is only what’s touted everyday, like the illegals: under-reported. All the left-pocket owing the rt-pocket, unfunded liabilities, illegal takings\spending, etc.
To think that the grifters and takers (let alone the Socialists\DEMs) will allow the market to correct, and KEEP on that heading is unicorns and rainbows. Out of office would be the entirety of (R), not saying THAT’S not a good thing, and the ‘opposition’ would reverse course and hit the gas to even a grander finale.
Yes, but it allows for subpoenas to the proper sources. ( grin).
This is far more complex than that.
Only if they were nuts enough to have ARMS or lots of credit card debt...
On the flip side, those who have managed their finances responsibly will be rewarded with higher interest returns on savings....
“Trump ought to Audit the Fed.”
And then push to get rid of it.
Trump simply announcing an interest in auditing the Fed will get an instant change of heart from ole Janet.
“Trump ought to Audit the Fed.”
Ding, ding, ding! But what would we tie our currency to? Gold?
Was it not our government that was either unwilling or unable to transfer German-owned gold back to them when the requested it?
Our wealth has been plundered by Washington Democrats, with Republicans watching, and in many cases, assisting.
What do you mean by "audit"? What exactly would it involve?
No. As of this spring Germany has moved close to 200 tons of gold from the New York Fed to the Bundesbank in Frankfurt. That's roughly two-thirds of what they have in New York and the remainder will be transferred in the next year or two.
If he wants you gone, I have the feeling no one is more capable of making your day-to-day work life a living Hell than Donald Trump.
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