Fed's Plosser calls for rate hikes
- Thread starter ASusilovic
- Start date
He simply is saying inflation needs monitoring.....no kidding.....highschool economics.
well it is more hawkish than usual. anybody saying that this is a normal speech from fed had their heads in the sand for the past 2 years.
expectations are more emphasized and that combined with the commodity rally, dollar selloff and the curve steepening is not painting a dovish picture.
that's why i a surprised about no reaction at all (in fact the inverse has happened). this just tells me that fed existence borders on irrelevance...
basically the market knows that the fed will swap price stability for... for what actually?...
expectations are more emphasized and that combined with the commodity rally, dollar selloff and the curve steepening is not painting a dovish picture.
that's why i a surprised about no reaction at all (in fact the inverse has happened). this just tells me that fed existence borders on irrelevance...
basically the market knows that the fed will swap price stability for... for what actually?...
agreed, and so has the market. My target is for fed rate hikes in late 2Q 2010 and I fully expect it to occur while unemployment is still in the process of moderating. I also expect gold to sink like the rock it is when the surprise first hike occurs. 15% burn on gold is not out of the question.
Interesting discussion.
I wondered if anything is going to come out of this Thursday Senate hearing for Bernanke. Is there any realistic possibility he will have to step down? And if there is, who is his likely successor?
I'm not really a Fed watcher but I noticed that Bullard and Plosser are more hawkish than the others suggesting a rate hike may be needed before unemployment comes down.
And yet whenever the minutes come out they re-emphasize 'low rates for an extended period'. Is it just me, or do the comments of the Fed members not square entirely with the Fed statements/minutes??
I wondered if anything is going to come out of this Thursday Senate hearing for Bernanke. Is there any realistic possibility he will have to step down? And if there is, who is his likely successor?
I'm not really a Fed watcher but I noticed that Bullard and Plosser are more hawkish than the others suggesting a rate hike may be needed before unemployment comes down.
And yet whenever the minutes come out they re-emphasize 'low rates for an extended period'. Is it just me, or do the comments of the Fed members not square entirely with the Fed statements/minutes??
