Inquiring minds may wish to read the December 19 FOMC Statement.
It contains nothing but the usual drivel about jobs and maintaining its “dual mandate”.
Fed Statement Tracker
The Wall Street Journal Fed Statement Tracker shows the Fed did add some language about vigilance as I expected.
There you have it. The Fed “will continue to monitor global economic and financial developments and assess their implications for the economic outlook.“
How comforting!
Dot Plot September 27, 2018
In December, 6 participants thought that hikes topped at 3.0-3.25%.
In September, 4 participants thought the Fed would stop at 3.25-3.50% and another thought the Fed would get to 3.50-3.75%.
Expectations have come down. They are still preposterously high.
Recession Baked in the Cake
It’s Too Late to Matter Now what the Fed says it will do, or even what the Fed actually does do.
A recession is now baked in the cake.
Mike “Mish” Shedlock
Rates have been too low for decades and the Fed seems like they will once again hike all the way into a recession. They may need bullets but this time they will seem more like blanks. Credit markets will freeze worse than 2008 when people realize they have been screwed as before.
Richard Fisher admitting they floated the stock market and warned of the risks back in 2012. Now we get to see if the stock market can survive a series of more rate hikes. He states they need more bullets in their pockets to cut later on.
And with Big deficits piling up at a blistering (scary)pace,knocking on the door of wait for it…….$300 billion a MONTH in red ink,just skip over 2 tril jump straight to again wait for it….$3trillion a year in red ink by 2020 in a (simulated) “booming”economy!