Rift at the Fed?
October 8th, 2009 11:45 pm | by John Jansen |The New York Times is running a story about a rift at the Federal Reserve regarding the delicate matter of raising interest rates.
I believe that one day next week the Federal Reserve will release the minutes of the last FOMC conclave. That should prove interesting as will have a chance to see if a split is deceloping.
5 Responses to “Rift at the Fed?”
By None on Oct 9, 2009 | Reply
Right now the Fed doesn’t need focus on the interest rate. The Fed needs to stop QE.
If you look at the DXY chart and you’ll see the dollar drop dramatically on Wednesday night before the Thursday maturity of the SPF bills.
It didn’t happen last week before the looming unemployment report. But it happened the week before last, and last night the dollar started falling like gang busters from 76.5 to 75.5 before the Asian intervention.
It will happen again this coming week, unless the Fed stops this non-sense.
The Fed can talk all it wants about interest rate hikes, but if it floods the market with dollars, talk is just talk.
Bernanke is doing his job like this is a big joke on the US. He gives banks boat loads cash, and then in return, the banks sell the dollar and rate chase on the back of the US tax payer.
There are 4 more weeks, and at this rate the US can be in a boat load of trouble.
Most in the market believe there is an inverse correlation between the dollar and the stock market: they have very short memories.
In 1987 the dollar was falling and the market was making an outsized gain, that is until the music stopped, and the market fell 30%.
By ejsmith on Oct 9, 2009 | Reply
None – I agree totally. It’s comical that the Fed invents this “rift” about raising rates while QE is still underway and won’t wind down for another quarter. Is it any wonder the Fed has ZERO credibility these days when a two-year old (New York Times notwithstanding) can see straight through these weakass jawboning attempts?
Last time I checked the money center banks were still on life support and facing billions more in losses on commercial real estate. This is hardly the environment in which the Fed is going to lift rates if their rescue plan hinges on raising the dead by lending to insolvent institutions.
In the meantime, the specs are going to party like it’s 1999. In your face, Bernanke.
By xls on Oct 9, 2009 | Reply
Agree. We will now proceed to our new regular programming, entitled »the rift«. A new breed of reality show. Full of stars. An Emmy award frontrunner, for sure. Not so sure about the box office outlook.
By xls on Oct 9, 2009 | Reply
Episode 16: The main character ousted by The executive producer.
By franko on Oct 9, 2009 | Reply
ahem, Mr. Obama gets Nobel Peace Prize – perhaps Bernanke is in line for the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, otherwise known as the Nobel prize for economics……or does Bernanke *already* have it?
wow