Dudley: FOMC to give wide berth to stocks as it hikes


The third mandate: It looks like it's up to buyers and sellers of financial assets when it comes to how quickly the Fed moves when it begins its rate hike cycle. FRBNY chief Bill Dudley  says the FOMC will keep a close eye on markets as rates move up. If the response is relatively mild - like the way the bond market has treated the taper - than the Fed may move quicker. If markets tank, than slower.

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Comments (10)
  • captiankirkoptions
    , contributor
    Comments (241) | Send Message
     
    What! This is garbage it is not the Fed's job to manipulate markets.
    20 May 2014, 03:28 PM Reply Like
  • wyostocks
    , contributor
    Comments (9112) | Send Message
     
    Finally an admission of what we all have known for a long time----The Fed is manipulating the markets and not just the stock market.
    20 May 2014, 03:31 PM Reply Like
  • Tobias Schmitz
    , contributor
    Comments (544) | Send Message
     
    I think we should stop calling it the Federal Reserve Bank, and start calling it by its real name: the green cheese factory.
    20 May 2014, 03:36 PM Reply Like
  • yv204
    , contributor
    Comments (178) | Send Message
     
    Eh, Dudley is in no way suggesting that the Fed will hike according to market sentiment. Keeping an eye on something to gauge public reaction isn't the same as tying oneself to a rigid promise. What he actually said was that if the bond yields shoot up sharply in the wake of a particular decision, the Fed will consider letting up on how quickly the hikes will come. That's expectations management, something Dudley should be real good at from being the head of Goldman in the past.
    20 May 2014, 05:01 PM Reply Like
  • Alvin5007
    , contributor
    Comments (177) | Send Message
     
    What happens if the Fed gets a short squeeze?
    20 May 2014, 05:46 PM Reply Like
  • minecanary
    , contributor
    Comments (1191) | Send Message
     
    And if their banker bosses really throw a hissy fit and tank the market, the taper will be off altogether, and purchase will be back at $100 bill. Of course, that's coming anyway since they can only pretend that Belgium is buying more T-bills then their GDP for a few weeks....The game will be totally up if China decides to throw a few hundred billion on the pile to protest the hacking charges.
    20 May 2014, 10:01 PM Reply Like
  • pollyserial
    , contributor
    Comments (1113) | Send Message
     
    This is nuts! The Fed is risking getting shut down with this attitude IMO.
    20 May 2014, 10:40 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    This is such an interesting time to be alive.

     

    With the European central bank cutting to negative real interest rates, how will we move forward?
    20 May 2014, 10:44 PM Reply Like
  • financeminister
    , contributor
    Comments (1201) | Send Message
     
    yeah, really is an interesting time to live in... I'm starting to feel that the fed is the world's largest hedge fund.
    21 May 2014, 12:04 AM Reply Like
  • wyostocks
    , contributor
    Comments (9112) | Send Message
     
    financeminister

     

    I would say that the Fed is the world's largest Ponzi scheme. Hedge funds for the most part are honest about their investments (except of course for Mr. Corzine).
    I believe absolutely nothing that the Fed says.
    21 May 2014, 03:55 PM Reply Like
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