YELLEN on U.S. INTEREST RATES - Sees Possible December Rate Rise & Gradual Hiking Path

 
As the market now diligently calculates the suddenly surging odds of a December rate hike, here's Yellen with a preview of what will happen once the rate hike cycle is aborted... YELLEN SAYS IF OUTLOOK WORSENED FED MIGHT WEIGH NEGATIVE RATES YELLEN SAYS NEGATIVE RATES COULD HELP ENCOURAGE BANKS TO LEND

... just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs. YELLEN SAYS SHE DOESN'T SEE NEED FOR NEGATIVE RATES NOW YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT Because when have the Fed's forecasts before ever been wrong. The economist put together a model that seeks to track what the federal funds rate should be based on how much progress is being made toward the central bank's dual mandate of full employment and price stability - in essence, a modified Taylor Rule. He then calculates how much actual policy has deviated from the prescribed path based on volatility in bonds, his preferred proxy for market stress. Lee concludes that skittishness in fixed income tends to elicit an easier stance from the central bank than the economic data would imply, especially since the financial crisis: u.s. usa america "united states" economy spending shopping exports imports china wholesale "savings account" "bank account" banking bank savings gold silver bullion "interest rate" credit debt inflation energy 2015 2016 elite jobs employment speech rates "credit card" data "gold bullion" growth employment future trends leader leadership "cash for gold" asset money usd dollar "forex trading" "stock market" investment "elite nwo agenda"

Federal Reserve Chair Janet Yellen on Wednesday pointed to a possible December interest rate "liftoff" but said rates would rise only slowly from then on to nurture the U.S. economic recovery.

Yellen, Dudley and the other 15 Fed policymakers now have six weeks to analyze new data, debate and decide whether at their Dec. 15-16 meeting to end the ultra-low interest rates set in response to the 2007-2009 economic crisis and recession. Debt ratios have reached extreme levels across all major regions of the global economy, leaving the financial system acutely vulnerable to monetary tightening by the US Federal Reserve, the world’s top financial watchdog has warned. The United States shouldn’t raise interest rates to avoid hurting developing nations dependent on the U.S. dollar, China’s finance minister said. Lou Jiwei said the dollar remained critical to the global economy. Lou was optimistic about Beijing’s economic future, but warned officials need to manage China’s slowdown carefully. “The slowing of China’s economic growth is a healthy process, but it is a sensitive period. The Chinese government must make accurate adjustments, keeping the economy within a predictable space while continuing to promote internal structural reforms,” he said. The Swiss-based BIS said total debt ratios are now significantly higher than they were at the peak of the last credit cycle in 2007, just before the onset of global financial crisis. In the years since the derivatives disaster, there has been no end to the absurd and ludicrous propaganda coming out of mainstream financial outlets and as the situation in markets becomes worse, the propaganda will only increase.









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