So, Don't Expect The Fed To Rush Rate Hikes - page 2

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hawks are talking only when they must save the S&P 500. I would not count on what they tell as something reliable

 

Bully Bullard: Fed goals are nearly met

Here comes the ever chipper James Bullard

  • Fed needs to start normalisation
  • Liftoff will be a minor event and mon pol will still be accommodative
  • Liftoff is a relatively minor part of normalisation
  • Fed's jobs and inflation objectives are close to being met
  • Fed's employment and inflation mix are about as good as they have ever been

Here's one man looking through the jobs report. He may have a greater sway on things when he votes next year

 

Dismal U.S. Jobs Report Reduces Chances for a 2015 Fed Rate Hike

Today, the U.S. Labor Department reported that the U.S. economy added only 142,000 jobs in September. This number was well below the pre-report estimate of 202,000 jobs. Unemployment held at 5.1% and Average Hourly Earnings were unchanged. Traders were looking for a 0.2% increase. Non-Farm Payrolls for August were downwardly revised from 173,000 to 136,000.

The Fed has been watching the job market closely for clues about when it would be appropriate to raise interest rates for the first time since 2006. The unemployment rate had been declining steadily, but economists had attributed this to the lowest labor force participation in a generation.

On Friday, the government reported that the participation rate had plunged to 62.4 percent in September, its lowest since October 1997. The total labor force fell to a 2015 low, losing another 350,000 people. In addition to the weak headline numbers, wages were flat, indicating little inflationary pressures for the Fed, and the average work week actually fell a fraction to 34.5 hours.

 

There were never chances to rate hike - FED knows it all the time

 
 

Rate Hike Shelved as Fed Winds Up For December The Federal Reserve passed up on raising the policy rate at its October meeting as policymakers watched the labor market recovery slow in recent weeks but preserved the option of a lift-off at the next meeting.

The target for the federal funds rate, the overnight benchmark, will remain in a range of 0% to 0.25%, the Federal Open Market Committee (FOMC) announced on Wednesday.

However, officials added that they will continue to monitor incoming data and resasses their decision when they gather next time on December 15-16.

"In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress - both realized and expected - toward its objectives of maximum employment and 2% inflation.

 

EUR/USD: Dollar On Fire After FOMC Keeps 'DecHike' Alive The greenback reversed losses against the euro on Wednesday after the Fed policymakers removed the line saying that global developments may restrain growth from their closely watched policy statement and said the economy "has been expanding at a moderate pace". Reiterating its readiness to act in the future, it also explicitly said that it would determine whether it is time for the rate hike at the next meeting in December.

The EUR/USD pair was trading 0.44% lower at $1.1000 in the minutes following the FOMC statement delivery. It had been seen at the $1.1070 handle an hour prior to the document's publishing.

The US central bank kept interest rates unchanged, meaning that the target rate for overnight lending between banks is steady at 0% to 0.25%, as it has been since 2008 when the Fed kicked off efforts to nurse the economy back from a severe recession.

As previously, Jeffrey Lacker was the only one who dissented and voted for a 25 basis-point rate hike.

 
 

Fed might have given clear direction to the clarity hungry market

 
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