Friday, March 3, 2017

March Rate Hike On Table #TheFed

Interest are headed higher, not only because the invisible hand demands it, but also because the Fed will be forced to follow to avoid the label of 'idiots' from smart money. While the ECB wants the Fed to remain the idiot that supports their failed zero interest rate policy indefinitely, they're delusional to believe any country will pick international over domestic policy objectives over the long-term.

Of course, there will be usual chorus of experts calling for the inevitable recession driven by rate tightening cycle, but few other than the foolish majority will be listening.  Rising short-term interest rates will accelerate the dollar rise and Euro's decline.  That is, unless the ECB wakes up and starts raising rates too.  The invisible hand isn't too optimistic that this will happen. 

Headline: Fed Chair Yellen says a March rate hike is on the table

Federal Reserve Chair Janet Yellen says a March rate hike is on the table.

At a speech before the Executives Club of Chicago, Yellen said, “given how close we are to meeting our statutory goals, and in the absence of new developments that might materially worsen the economic outlook, the process of scaling back accommodation likely will not be as slow as it was in 2015 and 2016.”

Adding that, “In short, we currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect. Indeed, at our meeting later this month, the Committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate.”



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.