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Evans: First hike could come in late 2015

  • Expecting the Fed to begin the QE taper this year and end the program altogether by the middle of next year, the Chicago Fed's Charles Evans suggests the first rate hike could come in late 2015 as unemployment falls below 6.5%.
  • While these are his expectations, he stresses he still needs to see employment improve and/or inflation accelerate. Any changes will hinge on the data.
  • The somewhat hawkish outlook from one of the FOMC's leading doves is having little effect on Treasury prices which continue higher ahead of 8:30's employment report. The 10-year yield is at 2.96% after touching 3% in overnight trade. TLT +0.3% premarket.
  • Long-duration Treasury ETFs: TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.
Comments (5)
  • The Patriot
    , contributor
    Comments (320) | Send Message
     
    In other words, we dont know what the hell we will do.
    6 Sep 2013, 08:57 AM Reply Like
  • buyandhold???
    , contributor
    Comments (884) | Send Message
     
    good luck with unemployment under 6.5% ever again we have a growing population and less need for workers......it may get their bc of workforce participation falling off
    6 Sep 2013, 12:44 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    It will get there, but not for their stated reasons. The Federal Reserve is a corporation owned by the banks. The ultra-low interest rates were to bail out and recapitalize the banks. Bernanke has a duty to his stockholders, not the people. (That is why the Fed makes so many "mistakes"). The banks will make more money at higher interest rates, but first they have to be solvent, or appear so. They don't give a rat's ass about unemployment, as long as they aren't. We need to fire them as a country.

     

    Use the Federal Deposit INSURANCE Company. Run it like one. For First National Bank of Fargo, which makes car and home loans, cover $250,000. for London Whale's Fargo and Goldman Sachs and their 35:1 leverage and derivatives, cover $25,000 for the same price. In a week the people will own the banks. Then they will also own the bank's assets including their Federal Reserve stock. The problem will go away. Otherwise, it will inevitably compound. The real purpose of the Fed banker's cartel is government of the banks, by the banks, and for the banks. When one class of people has the right to create money, that class, at the end of the day, will have more money than the rest of us that can't create money. That franchise should be a public asset, and due to the overleveraging caused by the cartel, the people can get it for nothing.
    6 Sep 2013, 05:17 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11015) | Send Message
     
    Or rate hikes and then the end of QE then more rate hikes, lol. I just wonder what rates dos it take to get Japan and China to buy long term US treasuries. Right now China is seems like its buying all the gold it can for lack of other things to buy.
    6 Sep 2013, 01:03 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    "the first rate hike could come in late 2015"

     

    Didn't they say back in 2009 to expect rate hikes in 2010? Geniuses...
    6 Sep 2013, 02:07 PM Reply Like
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