Fed hawk says no taper in October


It's "too tender" to taper, Dallas Fed chief Richard Fisher tells Reuters, and he won't support such a move at the October meeting. Coming from a policy hawk (though a non-voter on the FOMC this year), it's a significant statement.

The government shutdown isn't just slowing the economy, it's leaving the PhD's at the Fed without a steady flow of numbers to plug into their models. Expect "sloppy" U.S. economic data for a few months thanks to the shutdown, says Fischer.

Comments (5)
  • shiv420
    , contributor
    Comments (5) | Send Message
     
    :)
    15 Oct 2013, 12:20 PM Reply Like
  • tom_t
    , contributor
    Comments (306) | Send Message
     
    Expect "sloppy" economic data? That will be tough, since we're all so used to the spot-on data that we've received in the past.
    15 Oct 2013, 12:34 PM Reply Like
  • mobyss
    , contributor
    Comments (2406) | Send Message
     
    Can't taper in October = "no clean data"

     

    Can't taper in December = "can't disrupt Holiday shopping season"

     

    Can't taper in January = "can't change policy at end of current Fed President's term"

     

    Can't taper in February = "can't change policy at beginning of new Fed President's term"

     

    Can't taper in March = "can't change policy while we wait for 1Q earnings"

     

    Can't taper in April = "can't change policy after hearing 1Q earnings"

     

    Can't taper in May = "shouldn't change policy when summer car buying season is getting started"

     

    Can't taper in June = " shouldn't change policy when summer house buying season is getting started"

     

    Can't taper in July = "shouldn't change policy while most of Wall Street is on vacation in the Hamptons and volume is so low"

     

    Can't taper in August = "don't want to disrupt the back-to-school shopping season"

     

    Can't taper in September = "don't want to cause any problems as markets enter traditionally weak months"

     

    Can't taper in October = "shouldn't introduce volatility so close to elections"

     

    Can't taper in November = "can't change policy until we evaluate election results"

     

    Can't taper in December = "shopping season, remember?"

     

    Can't taper in January 2015 = "wait for new Congress to present fiscal plans"

     

    And on and on and on...
    15 Oct 2013, 01:07 PM Reply Like
  • caupachow
    , contributor
    Comments (513) | Send Message
     
    he forgot to add till October 2017
    15 Oct 2013, 01:45 PM Reply Like
  • 7of9
    , contributor
    Comments (457) | Send Message
     
    Don't forget QE increase coming to take us out of economic weakness.
    15 Oct 2013, 02:07 PM Reply Like
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