The Federal Reserve members seem intent and content to make fools of themselves with continuous threats to raise interest rates. Some of them seem to discharge the “rate hike next meeting” utterance regularly as if they have Turret’s Syndrome. And yet, when the rubber meets the road, there’s no change in monetary policy.
And then there’s Janet Yellen. She becomes more pathetic with every public appearance. Today one of the CNBC goons asked her if the Fed has a credibility problem. If you can make sense of her answer please explain it to me. I really hope she was starting to trip on LSD someone might have slipped into her coffee because her response is nothing more than unintelligible utterances (as quoted from Zerohedge.com):
Well, let me start — let me start with the question of the Fed’s credibility. And you used the word “promises” in connection with that. And as I tried to emphasize in my opening statement, the paths that the participants project for the federal funds rate and how it will evolve are not a pre-set plan or commitment or promise of the committee. Indeed, they are not even — the median should not be interpreted as a committee-endorsed forecast. And there’s a lot of uncertainty around each participant’s projection. And they will evolve. Those assessments of appropriate policy are completely contingent on each participant’s forecasts of the economy and how economic events will unfold. And they are, of course, uncertain. And you should fully expect that forecasts for the appropriate path of policy on the part of all participants will evolve over time as shocks, positive or negative, hit the economy that alter those forecasts. So, you have seen a shift this time in most participants’ assessments of the appropriate path for policy. And as I tried to indicate, I think that largely reflects a somewhat slower projected path for global growth — for growth in the global economy outside the United States, and for some tightening in credit conditions in the form of an increase in spreads. And those changes in financial conditions and in the path of the global economy have induced changes in the assessment of individual participants in what path is appropriate to achieve our objectives. So that’s what you see – that’s what see now.
Say what? That’s not what I see. What I see is pathetic pscycho-babble from a human with dementia settling in…
For an interesting take on the FOMC policy announcement today, Eric Dubin at The News Doctors posted a discussion between Peter Schiff (Euro Pacific Capital) and Andy Brenner (Guggenheim Partners) that’s worth watching if you don’t care to watch the NCAA hoops tournament play-in games: Peter Schiff/Andy Brenner On Today’s FOMC Meeting.