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Thread: Janet Yellen: Possible next Fed move is a cut if global growth continues to slow

  1. #1

    Default Janet Yellen: Possible next Fed move is a cut if global growth continues to slow

    Too Funny. They caused the slowdown and Blame others.....






    Former Federal Reserve Chair Janet Yellen said the central bank may have to cut interest rates if a global growth slowdown starts to impact the U.S



    https://www.cnbc.com/2019/02/06/jane...eat-to-us.html

  2. #2
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    Central banks have become hostages to market bubbles.

    These market bubbles have become a geopolitical weapon.

    https://www.zerohedge.com/news/2019-...market-bubbles

  3. #3

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    On one hand Yellen's comments aren't all that material -- the Fed has signaled it is taking a more data dependent approach from here on with future rate hikes. They will only hike unless inflation calls for incremental hikes. They can do this because they are in a comfortable position with both employment and inflation and thus the focus is on maintaining and extending the current growth cycle as long as we can. That said, a data dependent approach is a two way road....if the data signals they need to cut rates, they will. Again, the focus is on extending the growth cycle for as long as possible. We have plenty of room to cut rates in a counter cyclical move if needed. So to that end, I don't see her comments as that crazy given what the Fed has already said.

    The flip side is I don't see how her back seat Fed driving is helping anyone. Her comments grab headlines and peoples' attention, but at the end of the day all they will serve to do is obfuscate and muddy the narrative the Fed is trying to communicate to the market. I liked Yellen as Fed Chair -- she probably should have stayed on rather than being replaced, but now that she has been replaced I wish she would just let bygones be bygones and move on from the Fed.
    The answers are in the data

  4. #4

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    Quote Originally Posted by Ryanferr View Post
    On one hand Yellen's comments aren't all that material -- the Fed has signaled it is taking a more data dependent approach from here on with future rate hikes. They will only hike unless inflation calls for incremental hikes. They can do this because they are in a comfortable position with both employment and inflation and thus the focus is on maintaining and extending the current growth cycle as long as we can. That said, a data dependent approach is a two way road....if the data signals they need to cut rates, they will. Again, the focus is on extending the growth cycle for as long as possible. We have plenty of room to cut rates in a counter cyclical move if needed. So to that end, I don't see her comments as that crazy given what the Fed has already said.

    The flip side is I don't see how her back seat Fed driving is helping anyone. Her comments grab headlines and peoples' attention, but at the end of the day all they will serve to do is obfuscate and muddy the narrative the Fed is trying to communicate to the market. I liked Yellen as Fed Chair -- she probably should have stayed on rather than being replaced, but now that she has been replaced I wish she would just let bygones be bygones and move on from the Fed.
    That's exactly why the dems should also leave Trump doing what he does instead of constantly putting media sticks between the spokes. Clintona lost the game and Yellen is out. I fully agree she should not blurr the picture and what you wrote is OK, but that should apply to others too.

    Golditiki2+++

  5. #5

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    Quote Originally Posted by golditiki2 View Post
    That's exactly why the dems should also leave Trump doing what he does instead of constantly putting media sticks between the spokes. Clintona lost the game and Yellen is out. I fully agree she should not blurr the picture and what you wrote is OK, but that should apply to others too.

    Golditiki2+++
    Key difference is the Democrats are chiming in on political issues being juggled by Congress and the Executive branch, which is specifically their job. The Fed is a non-political entity and it isn't customary for previous chairs to opine as heavily as Yellen is on current policy decisions. That doesn't mean Fed policy can't be debated and discussed by economists, investors, and other observers, just that it reflects poorly when an ex-chair muddles the waters with the current administration.
    The answers are in the data

  6. #6

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    Quote Originally Posted by Ryanferr View Post
    it isn't customary for previous chairs to opine as heavily as Yellen is on current policy decisions.
    That's the New Political Way, Obama, Clinton, et al

    and you seriously think the Fed isn't political?
    It's part of the larger picture, in fact, it's a crucial part

    Take the Fed away and lots of power connections will be lost
    Honor for US, Justice for Our Children! Now!

  7. #7

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    Quote Originally Posted by Chump Change View Post
    That's the New Political Way, Obama, Clinton, et al

    and you seriously think the Fed isn't political?
    It's part of the larger picture, in fact, it's a crucial part

    Take the Fed away and lots of power connections will be lost
    It is supposed to be insulated from Congress & the President, i.e. independent. Sometimes politics finds its way into Fed policy -- Trump certainly tried back in Nov/Dec when he was blasting the Fed for raising rates and "hoping" for lower rates, but in theory it is supposed to be insulated from that type of conjecture. To that end, political influencing is largely viewed as inappropriate despite the fact it does happen from time to time. I was simply drawing a distinction between that reality at the Fed and what legislators are doing in Congress which is a political body by its definition.
    The answers are in the data

  8. #8

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    Quote Originally Posted by Ryanferr View Post
    It is supposed to be insulated from Congress & the President, i.e. independent. Sometimes politics finds its way into Fed policy -- Trump certainly tried back in Nov/Dec when he was blasting the Fed for raising rates and "hoping" for lower rates, but in theory it is supposed to be insulated from that type of conjecture. To that end, political influencing is largely viewed as inappropriate despite the fact it does happen from time to time. I was simply drawing a distinction between that reality at the Fed and what legislators are doing in Congress which is a political body by its definition.
    I was just teasing ye to see how ye would spin yrself out of the trap. Of course the actions of the fed are political. Even an innocent child knows that money is power, politics and vice versa. So it has always been and will be.

    Golditiki2+++

  9. #9
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    Central banks actively support stock markets. Even quite directly.

    Eg Bank of Japan holds 75 % of the Japanese ETF's.

    The central bank of Switzerland has 20 % of its reserves in equities,
    because.....that is where the money is.

    Is there a conflict of interest ? If a central bank owns a big stake
    in a private company, how "private" is that company any more ?
    Is the company, in effect, subsidized by the government ? Can the
    competition complain of subsidies ?

    https://www.channelnewsasia.com/news...japan-10477928

  10. #10

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    Quote Originally Posted by oak333 View Post
    Central banks actively support stock markets. Even quite directly.

    Eg Bank of Japan holds 75 % of the Japanese ETF's.

    The central bank of Switzerland has 20 % of its reserves in equities,
    because.....that is where the money is.

    Is there a conflict of interest ? If a central bank owns a big stake
    in a private company, how "private" is that company any more ?
    Is the company, in effect, subsidized by the government ? Can the
    competition complain of subsidies ?

    https://www.channelnewsasia.com/news...japan-10477928

    It is a secret position that the central banks HAVE to own stocks insofar as to be able to manipulate the stockmarket and keep the market positive. I am sure they will deny but behaviour is giving proof that the central banks react immediately to stockdips so whatever they say it are their actions who reveal their intentions.

    Real markets do not exist anymore, they are Marxmarkets.

    Golditiki2+++

    .

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