UPDATE: 1:25- September Rate hike is not happening. Brainard had to throw out the speech
- Odds of hike cut in half from 20% to 10%
- Brainard says case for tightening "less compelling"
- PRUDENCE IN REMOVING ACCOMMODATION- no hike
- Blames China on difficulty in transforming into consumer economy.- that has been their goal for last 10 years. Now she cites it?
- China wants its citizens to buyits own goods
- This reduces need for USD in trade
- Reduces their dependency on US as customer.
- none of this is new at all. China has struggled at this for years.
Rabbits pulled out of hats again
-sk
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Markets will be looking closely today when Fed Gov. Brainard gives a scheduled speech. He was expected to talk tough. Stocks and Bonds and Precious Metals will likely react to any news as they seek reason to believe in the Fed. Does the Fed believe in itself anymore though?
Live Stream starts here at 1:20PM EDT
Fed Governor Lael Brainard on US Economic Outlook and Monetary Policy
In the last decade, US interest rates were increased once – and still hover near zero. Recent statements by senior Federal Reserve officials suggest that the case for raising rates has strengthened, yet economic indicators still paint a complex picture. In advance of the next rate-setting meeting this September, what is The economic outlook for the United States, and what are the monetary policy implications?
"We believe the Fed is hamstrung Politics, data, and price action tell us they cannot raise. Neither can they stimulate unless we have a major market selloff. Their effectiveness is waning, almost like the Emperor is doing a slow strip tease before our eyes. But looking at where we are now, how can anyone oppose Fed intervention, given that they are the cause of this? The lack of courage to take our medicine years ago has put us in a position where to take the proper dose now would kill us. So we are wed to the Fed. It is possible that they now need a quick washout to justify intervention on a massive scale. And that could be the inflation switch"- Echobay
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