Dollar’s Drop Signals Doubts Over Fed Rate Rise
"Investors appear to believe that soft global economic growth will limit Federal Reserve’s capacity to tighten monetary policy."
Yeah, what a surprise, but the Fed is bucking the smart move like a fool bucks holding onto his money.
"Federal Reserve officials are trying to signal that another rate increase is likely while at the same time questioning whether the economy can expand fast enough to justify lifting them much beyond that. It is a confusing combination that is sapping the Fed’s influence over markets."
Only a Lolly Knob, or a Fed Watcher journalist, but I repeat myself, would listen to the Fed anymore. Last December, the Fed just knew that the economy was in a blowout mode, and the world economy was ripping and roaring. Except none of it was true. And by January, the Fed was furiously backpedaling, making statements about how no one could have foreseen the problems.
Well, except for the myriad of us who did, and said something at the time. The powers that be at the Fed today are equally as bad as our political class. They are bottom of the bucket scrapings. The problem is they are the pinnacle of the progressive Fed crop, at a time when progressivism is solidly, and constantly running into reality. They can no longer figure out why foolish policies do not work. Mostly because we are all, even the in the tank progressives, understanding that these policies cannot work.
The Fed will continue to confuse itself, and make bad decisions, erring towards progressive policies, the very policies which no longer work. I trust they will come a cropper of this sooner rather than later. It would be good to simply begin moving on from this silliness, and soon.
Who knows what the Fed will do regarding raising rates, they are clueless, and have no idea on how to asses the current situation. As Milton Friedman said so long ago, replace the Fed with a simple computer algorithm which slowly, but surely expands the money supply as the economy grows. Then stand back and let the market price interest rates.
But no, we get clowns. They should be required to play that circus clown music before every press conference.