Fed officials make case for 2015 liftoff after September hold
“Three Federal Reserve policy makers argued on Saturday for lifting the central bank’s key interest rate before year-end, countering bets by many traders that the Fed will wait until 2016.”
MK note: You had to know this was coming. If the story about the boy who called wolf suddenly jumped into your consciousness, it is not difficult to understand why. Consider for a moment having to put up with this until the Fed reconvenes in December. “Eight years after a financial crisis brought the world economy to the brink of collapse,” says Financial Times Sam Fleming, “central bankers are no wiser about what mixture of monetary, fiscal and financial regulatory policy can best assure stable long-term growth. Once again, the fate of the global economy rests on the judgement of a few individuals without reliable economic models to guide them.” In short confusion reigns, and it might be said, judging from this Bloomberg article, that some Fed governors were surprised by the stock market’s negative reaction after it decided not to raise rates last Thursday. It seems the Fed finds itself in a position similar to the two individuals in the cartoon below.