Yesterday I mentioned that after the announcement that yellen would come out and bow to wall street with her dovish talking at her q&a conference and she did EXACTLY that, she gave wall street once again the most DOVISH statements she could possibly give.... I mean you can't make this up, everything wall street wanted they got today, here is why markets rallied....
So looking at this you notice that rates are predicted to be .50% lower by the end of 2015 than originally noted, a rise to .625% instead of the 1.125% as once predicted.....for 2016 a .625% decrease in the median rate than was what originally thought....and now they see the economy growing slower, slower???? really, slower? I keep hearing how off the charts this economy is doing especially with unemployment falling below 5% in the next year or so...so when will the fed admit that these zero rates and a 5.5% unemployment rate and the trillions they pushed through the system aren't working, I want to know immediately what their next step is to push growth higher going forward, if they can't get the growth they want of 3%+ gdp with zero rates then what is wrong with this picture, why are stocks booming like we just entered a new fucking industrial revolution yet gdp predictions are falling???
Just keep these fed notes near by and come back to them in December, I can guarantee you rates will not even be above .25% at the end of 2015 and by end of 2016 you will be lucky to see rates above 1%, by then markets will be in turmoil and any rate hike will be long forgotten about as the fed tries to stave off the next collapse.
WASHINGTON (MarketWatch) —
The Federal Reserve will raise interest rates far more slowly than previously expected, according to the central bank’s updated “dot plot.”
The Fed’s latest dot plot shows that top officials expect the median federal funds rate, now near zero,
to rise to 0.625% by end of 2015 instead of 1.125% as predicted in December. For 2016, the median rate is expected to end at 1.875% instead of 2.5%.
Also see live blog of Yellen press conference
In the “longer run,” the Fed sees the median rate climbing to 3.75%, the same as before.
The slower pace of rate hikes likely stems from the Fed’s more subdued assessment of U.S. economic growth.
The bank sees the economy growing 2.3% to 2.7% in 2015, below its prior target of 2.5% to 3%. Nor does the Fed see the U.S. growing more than 2.7% in 2016 or 2017, even with the unemployment expected to fall to as low as 4.8% from its current 5.5% level.
http://www.marketwatch.com/story/fe...-path-of-rate-hikes-2015-03-18?dist=afterbell
