Fed To Raise Rates? (I doubt it)

Dan North of Euler Hermes provides a smart overview of what the Fed’s options are:

Marketwatch:

 

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  1. Mike in NOLA commented on Jun 10

    I suppose Ben will again be shown up if Trichet actually does something more than talk about raising rates.

    As for Paulson, I wonder if his counterparts at the G-8 have to practice not laughing when they listen to him. In law school I learned that your arguments should always pass the “risibility test,” i.e. not provoke an LOL response. I suppose Paulson never learned that rule. Or maybe he has passed the point of worrying about being laughed at by those who don’t have banana republic currencies:

    Treasury Secretary Henry Paulson will tell his Group of Eight counterparts that “strong” U.S. long-term fundamentals will be reflected in the dollar, and said he would “never” rule out intervening in the currency-market.

    “The long-term fundamentals in my judgment are not only strong, but they compare favorably with those of other industrialized major economies,” Paulson said in an interview with Bloomberg Television today in Washington. “Those long-term fundamentals are going to be reflected in our currency value.”

  2. scorpio commented on Jun 10

    i suppose Ben was once a respected academic. but now he’s met the real world. he’s a political appointee. a Republican. the one’s around him are fleeing this sinking ship while they still have a name to trade on. he wont have that before long. today’s quote from the Boston Fed was “we’re going to manage inflation expectations”. not inflation, mind you. that cat’s already out of the bag. just the average family’s expectations. keep fooling most of the people most of the time. rates will rise sometime beginning Nov 5. whether Bernanke et al are successful in pulling McCain across the finish line or not. but certainly not before then.

  3. BG commented on Jun 10

    Joe Battipaglia,

    Great Job on Kudlow and Co. Tuesday tonight!! Keep’em honest, Buddy!!

  4. stuart commented on Jun 10

    “In law school I learned that your arguments should always pass the “risibility test,” i.e. not provoke an LOL response.”

    With a straight face, if you were told that Bush, Paulson and Bernanke in the same 24 hours all came out touting a stronger dollar, but was merely coincidence and that in no way is an indicator of coordinated jawboning, would that pass the risibility test?

  5. Mike in NOLA commented on Jun 10

    stuart,

    I’ll assume that’s a rhetorical question :)

  6. stuart commented on Jun 10

    you betcha Mike in NOLA.

  7. rickrude commented on Jun 10

    raising rates = magically solves the peak oil
    problem

    maybe I should sell my oil stocks ???!!!
    and listen to Bernanke ??

  8. Josh commented on Jun 10

    All the Fed is doing is trying to temper down the public’s expectations of inflation.

    If the Fed appears vigilant, they can maintain rates where they are. If inflation expectations continue to worsen…then what?

  9. johnnyvee commented on Jun 11

    Raise rate. I dare you.

  10. jombi commented on Jun 11

    What ever happened to substance? Does Bernanke really think he is that raw that by uttering some stupid words that markets will simply bend to his will? The b.s parade is over. You want something to happen? Get out there and do what is right and maybe right might come back. Good speed to deleveraging and deflation to assets. What do you think happens when you have created an empire on printing money and one based on overpriced ‘need’ assets? They go down in value or people’s wages increase. It is shocking that these clowns have created such a complex system around themselves that they fail to understand the basics. I guess that’s what a PHD does to you. I am so glad I stopped at a Masters. I professor once told me.. I would rather a B’ student who has his Masters than an A’ student who has his PHD.. The class looked puzzled… His reasons.. Because the B’ student knows his limits and doesn’t have 100% faith in the crap he learned. THe A’ Student PHD thinks they are god and don’t know when they are ahead of themselves. To this I point to Bernanke and all of the other arse hats on wallstreet. Easy come Easy go. Easy up Easy down. The fundamental laws which govern nature/markets will never change and no act of ‘intervention’ will ever serve to change them. The intervention effort will wear out before the fundamentals do. Looks like Bernanke and all those believers in his convoluted effort are headed back to school !

  11. kennycan commented on Jun 11

    Paulson ran Goldman during its most profitable point in history and then jumped off just before the credit crunch hit.

    He’s so rich, he’s laughing at you.

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