http://blog.pimco.com/2015/09/29/macro-matters-when-the-chair-speaks/"Janet Yellen last week likely tilted higher market expectations for a December liftoff simply by not mentioning one word – China – in her speech, “Inflation Dynamics and Monetary Policy,” after several references to the nation in her dovishly perceived 17 September press conference."
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With today's disappointing jobs report, Yellen may now need to
NOT have said in that address that she expects interest rates to rise by year's end.
Got all that?
Comments
Honestly, I'll wait for the Fed apologists to ride to their rescue and explain how everything is great and the Fed didn't just spend years and devote enormous amounts of money to merely delaying the inevitable economic Winter.
I'm looking forward to more QE, because if a sugar high didn't create anything sustainable the first time, second time or third time, number four has to work. Right?
...or perhaps we'll go with NIRP.
Either way, if things are headed South I fully believe that the Fed will literally try everything and take monetary policy to even more reckless limits rather than simply letting the cards fall as they may.