fed fomc Lael Brainard

‘This Is An Important Development’: Lael Brainard Turns Hawkish, You’re All Fucked

"Risks are moving toward five."

"Risks are moving toward five."
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3 comments on “‘This Is An Important Development’: Lael Brainard Turns Hawkish, You’re All Fucked

  1. Big Stevie

    Gotta love the jawboning from the Fed’s Board of Governors.

    They may not know what they’re doing re: monetary or fiscal stimulus, but they have perception (mis)management down to an art form.

    In any case Lael Brainard is part of the inner circle, so her comments are important.

    They want to get interest rates above 3% so they’ll have room to cut them again when the SHTF. The problem is: They’ll trigger the crack-up in the process.

  2. I saw bits of that live on the DailyFX feed. She was still dovish on the labor and wages data, which was always been the most important data to both Yellen and Yellen’s confidante Lael Brainard.

    I’ll bet anyone that 4 hikes aint gonna happen; I’ll give high odds there won’t be 5 and probably not even 3.

    The US debt and Fed balance sheet are too big to handle rate hikes, and the optics of huge interest payments from the Treasury to the Fed (even tho they don’t really matter) would be embarrassingly fugly particularly in an election year.

    Maybe 1-2 hikes, so will disappoint expectations. Yet another reason for a weakening dollar.

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