The Fed’s been looking for new friends this week, tuning out the haters and struggling to convince the public about potential rate hikes. Check out their follies below!
Flip-Flopping Fed Gets No Credibility from Market
A market that doesn’t care about the direction the Fed wants to take us can be a recipe for a firestorm. In 2016, the market’s faith in the Fed seems to be at an all-time low as they tout guidance, yet change course with as little as a single economic report contradicting them. All eyes were on Jackson Hole today as Fed Chair Janet Yellen opened up the annual Economic Symposium.
So what did she say? She stuck to her guns about the (now laughable) potential for another rate hike before the election. Those guns include being as vague as possible and hinting that a rate hike may or may not be coming very soon. All in all, Yellen didn’t really say much at all, other than to continue her standard issue talking points and give very little guidance for the market on the direction of the US economy.
This post was published at Schiffgold on August 26 2016.
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