FED Kabuki begins... again...

J

jem

Watch... the FED orchestrate... this message...

1. If Trump interferes... watch out. the economy will be hurt.

Per the Kabuki format...

1. First the FED brings out the spokes economists with the bad assumptions... like govt spending will produce inflation. I thought we are all taught the reason the govt borrows is to avoid inflation.

https://piie.com/blogs/realtime-eco...-elections-recession-expansion-and-inequality

2. at the same time a former FED warns us that it will hurt if FED independence is challenged...

https://www.bloomberg.com/view/articles/2016-11-15/how-trump-could-spell-trouble-for-the-fed

3. Now someone like Buffett or Soros or Gross or el Arain some other banker type whose fortune is tie to the FED will warn about similar issues.

4. Then the FED will bring out an article or 2 about them being internally split on how to deal with the situation.

5. Then they will march out McCain or Ryan or McConnell and some democrats and all the media types to further "stand for rationality" in a time of flux.

6. Then if Trump does not do what they want we will see articles about runaway inflation and they will crush the economy with a series of rate hikes.
 
The interplay between Trump and the Fed for the next two years is going to be a great spectator sport. A lot of gamesmanship will be going on.

But one thing is absolutely positively for sure. He cannot have Yellen running the fed in 2020. She has to be replaced in '18. If she's still there, she'll do everything in her power to screw up things in '20 just like she tried like hell to get Clinton elected this year. She's a hard left economist and it dominates her every move.
 
" Analysts spent early November warning a Trump victory in the U.S. presidential election would make the Federal Reserve less likely to raise interest rates. What happened instead is that it made a December increase almost a certainty. Traders assign about a 94 percent probability, the highest level this year, to a Fed move at its final meeting for the year on Dec. 13-14, futures contracts indicate."

The economy means nothing to these people or the fed. It's merely a matter of the last week or two in the stock mkt that dictates to them which way the fed will go.

So what do we need a thousand economists at the fed for? Is it a jobs program or something?
 
since they are paid by the Federal Reserve - a privately owned company... they can employ as many people as they wish. Its mind understanding those workers do not get a govt paycheck.

fhl said:
" Analysts spent early November warning a Trump victory in the U.S. presidential election would make the Federal Reserve less likely to raise interest rates. What happened instead is that it made a December increase almost a certainty. Traders assign about a 94 percent probability, the highest level this year, to a Fed move at its final meeting for the year on Dec. 13-14, futures contracts indicate."

The economy means nothing to these people or the fed. It's merely a matter of the last week or two in the stock mkt that dictates to them which way the fed will go.

So what do we need a thousand economists at the fed for? Is it a jobs program or something?
More...
 
jem said:
since they are paid by the Federal Reserve - a privately owned company... they can employ as many people as they wish. Its mind understanding those workers do not get a govt paycheck.
More...

Are their salaries deducted from the profit that the fed turns over to the US govt?
 
Oh look step 3 mentioned above confirmed...

Bill Gross was out talking... in a Reuters story 8 hours ago..


http://www.msn.com/en-us/money/mark...r-populism/ar-AAkmVnG?li=BBnb7Kz&ocid=SL5FDHP

Gross became the world's most famous bond fund manager at Allianz SE's (ALVG.DE) Pacific Investment Management Co, where he ran Pimco Total Return (PTTRX.O) and worked until 2014, when he joined Janus.

He now oversees the $1.7 billion Janus Global Unconstrained Bond Fund (JUCAX.O).

In his outlook, Gross said he did not vote for the Republican Trump or Democratic rival Hillary Clinton, and admitted that Clinton probably would not have done much better redistributing wages toward the working class.

He said it was "doubtful" that Trump's plan to repatriate huge corporate profits to the United States for infrastructure spending would succeed, saying that a similar effort in 2004 resulted in large stock buybacks, dividend payouts and corporate bonuses, but no noticeable pickup in investment.

Gross said Trump's policies mark a "continuation of the status quo," and that government could step in with a "Help America" jobs program to bolster labor in ways that overleveraged, cost-conscious corporations might not.

Regardless, Gross said "populism is on the march" and could last for decades unless workers' share of gross domestic product reverses its downward trend. Trump's immigration, tax and trade policies might not promote that outcome, he said.

"Global populism is the wave of the future, but it has taken a wrong turn in America," he wrote.

"Investors must drive with caution, understanding that higher deficits resulting from lower taxes raise interest rates and inflation, which in turn have the potential to produce lower earnings and P/E (price-earnings) ratios," Gross added.

Gross' fund through Monday returned 4.5 percent this year, outpacing 68 percent of its peers, according to Morningstar Inc data. Janus last month announced a plan to merge with London-based Henderson Group Plc (HGGH.L).
 
oh this is too funny.
step 4 confirmed.

today...

the video on bloomberg talks about the hawks inside the fed and also discusses the Fed not wanting to be too poiltical and talk about how trumps policies may impact rates.

http://www.bloomberg.com/news/artic...interest-rate-hike-could-come-relatively-soon

...

“Yellen’s testimony ignored the very real possibility of substantial fiscal stimulus next year,” Ian Shepherdson, chief economist at Pantheon Macroeconomics Ltd., said in a note. She “does not want the Fed to become even more of a political punch bag than it is already.”

Yellen’s remarks will serve to cement expectations, barring a significant negative shock, for an increase in interest rates when the Federal Open Market Committee gathers in Washington Dec. 13-14. Pricing in federal funds futures contracts already imply a greater than 95 percent chance of a quarter-point hike.

Risks of Delay
The Fed chair warned of the risks attached to waiting too long before raising rates.

“Were the FOMC to delay increases in the federal funds rate for too long, it could end up having to tighten policy relatively abruptly to keep the economy from significantly overshooting both of the committee’s longer-run policy goals,” she said. “Moreover, holding the federal funds rate at its current level for too long could also encourage excessive risk-taking and ultimately undermine financial stability.”
 
Look at last half hour of credit markets after fed outlook. This is the kind of thing Trump can expect as long as he has this biatch as head of fed.

They did everything they could to prop up obongo for eight straight years.
Here's what Yellen has in mind for Trump. And he isn't even in office yet.

She's a hard leftist. She'll make life miserable to any economic plans that aren't submitted by one of her commie friends.

Get rid of her before her term ends. There must be a way to drive her out.
 
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