Posted on 09/19/2015 7:52:22 PM PDT by BenLurkin
Markets sold off sharply this summer over concerns about a slowdown in China and weak world growth, leaving Fed officials to vet whether that reflected a short-term correction or more fundamental problems on the horizon.
"Financial markets tend to wax and wane, sometimes suddenly. Monetary policy needs to be more stable," said Bullard, who in prepared remarks here to the Community Bankers Association of Illinois said he did not think the Fed "provided a satisfactory answer" to why rates should stay near zero.
The economy is near full employment, and inflation will almost certainly rise, Bullard said, leaving the Fed's near seven-year stay at near zero rates out of line with the broad economic picture.
In a statement Lacker said he felt the current low rates "are unlikely to be appropriate for an economy with persistently strong consumption growth and tightening labor markets."
However at least for now the Fed set aside such concerns out of deference to a different worry: that a weak global economy may pull down the U.S. Specifically Fed officials, including Yellen, said a dip in measures of inflation expectations was worrisome if it proves to reflect eroding confidence in the recovery.
(Excerpt) Read more at reuters.com ...
“The economy is near full employment...”
Oh. My. Gawd.
“Divided Fed”?
The political hacks voted 9-1 to keep giving the banks (and the govt) free money! Divided? Like that’s a split-decision?
yup... that is why American blacks have a 50% unemployment stat. Young white males are probably sitting at 35%.
In the meanwhile, food stamp consumption has risen over 50% since nObama took office. In general real estate values are in the dumper and there are more millennials living in the family nest than ever before..... due to the booming , full employment economy.
Yup, they’re right!
i think the most absurd statement of the week was the fed said low interest rates have not contributed to the income gap what i would give to be able to get a bit of interest in a savings account again
These fools don’t know that America is the hub of western man. If America is doing good, so are its trade partners AND the rest of the world.
But then again, the jackwagon in the white house purposefully set out to marginalize America and in doing so brought calamity to the rest of the world.
This is how and why global wars start.
Yup.
I listened to Yellen speak and to the Q & A.
Got the impression (correct or not) that the Fed thinks it’s job includes taking care of the world’s economy. Not America’s.
Funny, he didn’t mention the historically labor participation rate. Or the U6 unemployment rate.
I would think that that thinking is true marxist, in keeping with the occupy whitehouse movement.
Diana, you're such a skeptic. It all boils down the definition of "full employment". A rational person would think that would mean essentially zero unemployment, but that's not the case.
I believe the Fed considers something around 5% unemployment to be "full employment". Silly, isn't it?
Of course, real unemployment is much higher than 5%. So the Fed just subtracts out those who have given up looking for work, and those who are working part-time, even though they might desperately want full-time work.
On second thought, it's not silly. It's criminal.
It’s like the football team got weaker so they just reduced the field size. Ah, all better! Well, no.
Who's giving the banks free money?
Well, I'm not in the biz; but as I understand it (stop me if you've heard this one):
Member banks get moolah at 0%, and then they lend it out at 4% (or not). But wait! If you act now, screw the 4% and play the stock market, and make $billions (or not; but, if "not", then you get a bailout; but only if you act now)!
The punchline is, the govt prints its own, doesn't have to service the debt because it's 0%. The banks are too big to fail. The hoi-polloi get punchlined in the gut.
The Discount Rate is currently 0.75%, is that a good deal for the banks?
Lies and more lies.
It just leaves you speechless..!
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