As anticipated, August was a month full of Fed jawboning because it was a month without an FOMC meeting. I knew they would fill the void with an expectations management extravaganza.
So, with the understanding that the tough talk on rates is just noise because they doggedly keep the real inflation, QE-style “tools”, in play (WTF are they afraid of, I ask for the 1000th time) how about a little consistency? Hey guys? If ‘Jobs’ come in strong, employment costs rise, CPI and PPI are firm and all is well, can we please get the rate hike in September? Pretty please?
Can we maybe proceed as normal now that we are so far beyond any economic troubles? I mean, it’s been 8 years since the last recession. Stocks are at all time highs. Besides, with Fed nearing goals, rate hikes could shield economy!
So why the constant hand wringing? Let’s legitimize the August Jawbones and get a hike going in September. No problem. It’s all good. While you’re at it, why not swear off any need for (formerly) unconventional (now sadly, all too conventional) tools? Show the world some leadership.
You now have the chance to be taken seriously again. Hike rates and stop the QE talk. Lead, lest you…
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