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Lockhart sounds a dovish note

  • Atlanta Fed chief Dennis Lockhart tries to walk back Janet Yellen's "six-months" comment on rate hikes (putting the first boost in H1 of 2015), saying that time frame is a minimum and suggesting rates won't move higher until the second half of next year.
  • "I think it's going to be longer than that indication ... We’re not going to flip a switch from easy money to tight money. We’re not going to flip a switch where overnight you go from one environment to a radically different environment. I don’t see that happening."
  • Separately, St. Louis' Jim Bullard says the FOMC hasn't talked about or committed to a specific month to end QE. “This is not a calendar-based policy - it’s a data-based policy."
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Comments (3)
  • Willow Street Investments
    , contributor
    Comments (1253) | Send Message
     
    "I think it's going to be longer than that indication ... We’re not going to flip a switch from easy money to tight money. We’re not going to flip a switch where overnight you go from one environment to a radically different environment. I don’t see that happening."

     

    Our government is so corrupt its stunning. Since when is raising interest rates from .25% to .50% in a first step "tight money." The FED just telegraphs to big money interests when they will make their move so the big money can get out. Meanwhile savers continues to get almost no interest on their hard earned savings.
    26 Mar 2014, 08:19 AM Reply Like
  • SimonSaysShort
    , contributor
    Comments (114) | Send Message
     
    "Since when is raising interest rates from .25% to .50% in a first step "tight money."
    When the current rate is 0% and the FED is engaged in QE.

     

    "The FED just telegraphs to big money interests when they will make their move so the big money can get out. "
    Actually they telegraph their intent to everyone, and even your fabled big money tends to disagree over the FED's intent.

     

    "Meanwhile savers continues to get almost no interest on their hard earned savings."
    Yes, this is the point of QE, congrats on figuring that out. Encourage money to flow to areas that stimulate the economy.

     

    Feel free to argue against QE all day long, but equating it with government corruption is rather nonsensical.
    26 Mar 2014, 08:35 AM Reply Like
  • kmi
    , contributor
    Comments (4430) | Send Message
     
    With the big money investment firms starting to exit the homebuying circus (by securitizing their single family rental home payments, sound familiar to anyone?) my guess is after the spring/summer home buying season more indications of whether the economy is on decent footing will emerge.

     

    If homebuying holds up there may be some wind in the sails of raising rates, if it doesn't, there will definitely be little if any interest in higher rates.
    26 Mar 2014, 09:58 AM Reply Like
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