Federal Reserve Keeps Interest Rates Near 0% - Yellen Says Fed Concerned Over Global Economy Turmoil

 
Federal Reserve Keeps Interest Rates Near 0% - Yellen Says Fed Concerned Over Global Economy Turmoil

Fed officials stressed they're "monitoring developments abroad" and that global slowdown might restrain U.S. economic growth, inflation levels The Federal Reserve is keeping U.S. interest rates at record lows in the face of threats from a weak global economy, persistently low inflation and unstable financial markets.

Ending a highly anticipated meeting, Fed officials said Thursday that while the U.S. job market is solid, global pressures may “restrain economic activity” and further drag down already low inflation.

Signs of a sharp slowdown in China have intensified fear among investors about the U.S. and global economy. And low oil prices and a high-priced dollar have kept inflation undesirably low. For the past several months, the chorus of voices crying out over the prospect of a Federal Reserve interest rate hike have all been saying essentially the same thing – either they can’t do it, or they simply won’t do it.

This is the same attitude the chorus projected during the initial prospects of a QE taper. Given the trends and evidence at hand I personally will have to take the same position on the rate hike as I did with the taper – they can do it, and they probably will do it before the year is over.

I suppose we may know more after the conclusion of the Fed meeting set for the 16th and 17th of this month. August retail sales data and industrial production numbers have come in, and they are not impressive even with the artificial goosing such stats generally receive. However, I do not expect that they will have any bearing whatsoever on the interest rate theater. The Fed’s decision has already been made, probably months in advance.

The overall market consensus seems to be one of outright bewilderment, so much so that markets have reentered the madness of “bad news is good news” as stocks explode on any negative data that might suggest the Fed will delay. The so-called experts cannot grasp why the Fed would even entertain the notion of a rate hike at this stage in the game. Hilariously, it is Paul Krugman

Janet Yellen seems to be absolutely obsessed with increasing the benchmark interest rates in the USA as she desperately tries to put her stamp on her legislature as Chairwoman of the Federal Reserve. Even though the American economy definitely isn’t as strong as she thinks it is – the increases in employment are mainly due to part-time jobs which aren’t even sufficient to cover the costs of life – Yellen is determined to increase the interest rate which has been at a historical low since the Global Financial Crisis erupted But her meaning was a bit different, in that it is clear (from this speech and prior assertions, wrong as they were, about the mid-2000’s housing bubble) she sees bubbles as “market” events in which the central bank’s role is primarily shock absorption. In other words, idiot investors wholly of their own accord create bubbles and it’s the job of the munificent and enlightened Federal Reserve to help ensure that such “market” madness is “contained” without further economic destruction.
The United Nations launches a brand new “universal agenda” for humanity known as “the 2030 Agenda” The Muslim holiday of Eid al-Adha, also known as “the Feast of the Sacrifice”, begins September 23 – Pope Francis arrives at the White House to meet with Barack Obama

September 23 – The 266th Pope will be meeting with the president of the United States on the 266th day of the year. Some have suggested that “something is being birthed” on that day since 266 days is the average length of the human gestation period. September 24 – The Pope addresses a joint session of the U.S. Congress September 28 – This is the date for the last of the four blood moons that fall on Biblical festival dates during 2014 and 2015. This blood moon will be a “supermoon” and it will be clearly visible from the city of Jerusalem.






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