Jim Rickards Warns “QT1 Will Lead To QE4”

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies

There are only three members of the Board of Governors who matter: Janet Yellen, Stan Fischer and Lael Brainard. There is only one Regional Reserve Bank President who matters: Bill Dudley of New York. Yellen, Fischer, Brainard and Dudley are the ‘Big Four.’
They are the only ones worth listening to. They call the shots. The don’t like dots. Everything else is noise.
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Here’s the model the Big Four actually use:
1. Raise rates 0.25% every March, June, September and December until rates reach 3.0% in late 2019.
2. Take a ‘pause’ on rate hikes if one of three pause factors apply: disorderly asset price declines, jobs growth below 75,000 per month, or persistent disinflation.
3. Put balance sheet normalization on auto-pilot and let it run ‘on background.’ Don’t use it as a policy tool.

This post was published at Zero Hedge on Sep 21, 2017.