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Fed Now "Patient" ("Considerable Period" now a "reference.")

scott
edited December 2014 in Off-Topic
http://www.cnbc.com/id/102277498

Not only do I not think they're raising rates next year, but the ridiculous communication ("considerable period" is now a "reference", oy vey.) is long bullish nonsense - is "patient" longer than "considerable period"? Does the market have to be so coddled every single minute that "considerable period" has to be left in as a "reference"? But hey, stawks are happy.

"The Fed is so hawkish about the upcoming rate hikes, that since September, when the median dot was at at 2.875%, the dots, "surprisingly", have declined across the board and now have a median of 2.50%."

http://www.zerohedge.com/news/2014-12-17/december-dots-drop

Comments

  • JohnChisum
    When it does come time to raise rates, what if the Fed did it by ⅛ 's? Anything is possible.
  • JohnChisum
    Gundlach had predicted recently that rates would not rise in 2015.
  • LLJB
    This was the last vote for Mr. Fisher and Mr. Plosser as the former is retiring next year and the latter won't be a voter. The Fed is going to be more dovish than it has been and that's likely to err on the side of keeping rates low, probably for too long, and then needing to raise them more quickly when inflation ultimately rears its ugly head. Long term rates have been very low lately and at some point when the market decides the Fed has screwed up, the selling of bonds is going to be vicious.
  • Hogan
    I don't think they will raise rates. No government stimulus and no wage growth equals no raising of rates. Plus there will always be some world event postponing raising the rates. They don't want the bond vigilantes bullying them into a decision that stalls the economy. The economy has fundamentally shifted if we raise rates too much we hurt housing--previously if we lowered rates we hurt the banks. Homeowners and borrowers (workers) are on top not retirees living around golf courses in FL--these people living off CDs have already been hurt and we are still growing. I find it curious that some say when the Fed raises rates it is the free market but keeping rates low is somehow artificial? It is all artificial to a certain degree because of the fed--it comes down to whether the fed wants to raise rates and give the banks and retirees their 2 percent private sector tax on the rest of the economy (workers)--don't bet on it.
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