Will The Fed Finally Raise Interest Rates In December? - page 5

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Of course we trust Yellen
 
Tan Phan Ngoc:
Of course we trust Yellen
hehehehe, funniest thing I've read all week :D
 

experts are expecting a raise in interest rate :

http://www.forexfactory.com/calendar.php?s=1d72003f58775b3d781662115cd44fb7&week=dec13.2015

see december 16

Federal Funds Rate

<0.50% <0.25%


it look weird, infation is at zero level, this mean no économic growth, a raise in interest rate would made the USA go back to deflation, just what wanted to avoid Bernanke.

https://research.stlouisfed.org/fred2/graph/?graph_id=132311&category_id=7965


The situation is still the same than in 2008, 4% of people who bougth house, lost it in the past year, but they have to repay the credit.

https://research.stlouisfed.org/fred2/graph/?graph_id=132356&category_id=8006


velocity of M2 is at his lowest :

https://research.stlouisfed.org/fred2/graph/?graph_id=131842&category_id=7971


and about unemployment, the number of working people is at the same level than in 2008 :

https://research.stlouisfed.org/fred2/graph/?graph_id=132303&category_id=8008


So I don"t think yellen can raise rate, but some people are arguing she cannot not to rate raise because of hegde funds.







 

No, this time they wont raise the FED rate!

Chance are 70:30

 
Tan Phan Ngoc:
Of course we trust Yellen
In terms of ?
 

The Fed is seeming to justify raising rates based upon two indicators. Unemployment and inflation:

- Yet in 2004, 1994, and 1981 the Fed raised rates despite high unemployment rates. 

- Inflation is an economic issue that central banks has learned how to control.. 

But can the world? Is Emerging Market ready for lift-off?

Central bankers are so focus in the consumer indices to ignore that their monetarist printing of money is creating more dangerous hyperinflation in sectors like real estate, stock markets, etc.

Sectors that are stressed by the current rout in the junk bond market.


Back into 2008?

 
The last time they raised rates in a similar environment was in the mid 30's.
If central banks can't hit their inflation targets when prices are falling, why will they be able to hit them when prices are rising?
 
Stuart Browne:
hehehehe, funniest thing I've read all week :D
Trust or not trust Yellen.
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