In a Bloomberg interview today, Kaplan cited uncertainties and wants a pause in interest-rate hikes.
“We shouldn’t be taking any further action until some of these uncertainties resolve themselves,” said Kaplan.
He also stated that he wasn’t mulling an interest-rate cut but he is open to slowing down the pace of the shrinking of the central bank’s balance sheet.
Uncertainty Nonsense
What a joke. The way these charlatans phrase these things is always in the context that certainty is a “good thing”.
What if the uncertainties give way to a 100% proven recession?
The Bernanke- and Yellen-Fed both delayed hikes too long hoping for “certainty”. They did not want to kill a recovery.
What they got is a 100% certified bubble that is now imploding.That’s at least as certain as the certainty they seek.
Fed a “Beacon of Certainty”
What a hoot. Back in November, a JP Morgan strategist Samantha Azzarello called the Fed a “beacon of certainty” compared to markets and politics.
Gold Needs Certainty
The Srap Metal Register proclaims Gold needs certainty from fed to accelerate higher.
Apple Uncertainty
Also note that Apple Cites “Mounting Uncertainty”
Since apple wants certainty, I can help.
Apple Certainty
- Apple sells phones, a commodity.
- The competition sells phones that are arguably as good, for less money.
- At some point, consumers will no longer pay for a name.
- At some point, it is inevitable consumers will decide new features and upgrades are not worth the price. The same thing happened with computers.
It is uncertain when points 3 and 4 will happen, but it looks like it has started.
Looking for certainty?
I can help. It is 100% certain that portions of the yield curve are inverted.
The yield curve is flashing recession warnings. That is certain.
I believe recession hits in 2019. But that’s uncertain.
Mike “Mish” Shedlock
Isn’t the reason we support the wealthy and entrepreneurs because they are willing to take enormous risks with their own capital regardless of “certainty”? I mean, if everything is certain, can’t every schlub make money in a no risk environment?
“their own capital”
Hehe… good one!
It is difficult to make predictions, especially about the future.
-Karl Kristian Steincke (translated)
I’m in favor of the fed continuing to tighten. It’s doing exactly what it should be doing. Deflating the bubbles. Better a slow deflation now than a full blown pop in the future. A 20% correction in the DOW causing panic is reason enough to keep tightening.
The Fed is changing two variables at once by reducing its balance sheet and increasing rates. Maybe the reason the market is declining is that the Fed is selling equities which they bought in 2011.
one is a function of the other
There’s a toddler in the whitehouse… things aren’t going to settle down until it’s removed.
yes, and toddlers in both parties, which I guess you don’t like to admit.
..and at the Fed. And in virtually every department, even including defense. And in the executive suites of virtually every company. As well as the owners of every company and other institution and asset. Increasingly even among the tenured staff at every major university. And at every think tank…..
The whole point of progressivism, is shaping society according to a plan devised by those in power. Which inevitably means, the plan revolves primarily around ensuring that their, and their offspring, and their closest social circle, retains ever tighter grip on power. Everything from “The Law” to central banking to government policy revolves solely around this prime directive. Hence, robbing everyone else, and preventing anyone else from going around them.
Run any game with those rules for a few generations, and well connected idiots in charge of absolutely everything, is all you can possibly end up with. Which is why that is all we have left. Nothing all that controversial about it.
I am actually impressed with the dems standing up for once. The 5 billion is a fart in the hurricane of the 2 trillion trump deficit, but somebody has to stand up against outright waste and graft SOMEWHERE.
The wall will never, and should never be built. There are cheaper, more effective ways to police the border. The toddler in chief lives in the 70s, and his senility drives him ever farther into the past. The longer he holds his breath, the sooner we’ll be rid of him.
And there it is folks, full blown TDS.
Barron’s 12. Hardly a toddler.
Rest assuredeverybody: Jerome Powell November 28, 2018: Fed Chairman Powell now sees current interest rate level ‘just below’ neutral