by David Kranzler
Investment Research Dynamics
What are these Fed officials doing? They’re putting into question the credibility of the institution because they sound like idiots. – a good friend/colleague of Investment Research Dynamics
It’s becoming a farce of epic proportions, especially when there’s an entire month between FOMC meetings. Starting this past Tuesday the typical Fed officials began their monthly cyclical cant of rate hike threats. For some reason the stock and paper derivative precious metals markets always take a beating when the “threat” of a rate hike at the next meeting is floated.
On Tuesday one official stated that June was a meeting at which action could be taken but that it was too early based on Q2 data “to draw a conclusion.” Another official, SF Fed Prez, John Williams, threatened that “June was a live meeting.” Both officials gave themselves an “out” by saying that a rate hike depends on the data.