And on he goes
- There's uncertainty about how employment affects rates
- Actual inflation is not needed for confidence on 2% target
- Negative rates aren't on the table right now
- Negative rate benefits don't outweigh costs in crisis
- Unlikely Fed would ever buy foreign sov debt
- People believe that short term rates will rise
- There's a lot of info to come between now and the year end
- Latest retail sales were on the soft side
- Generally the US economy is performing well
- Inventories and trade are holding the economy back
- Doesn't know if productivity is being understated
If the Fed are going to raise rates this year they need to do so with an immensely bullish statement on the economy, and I mean go to town on it. If they raise with these sorts of 'maybe's', 'might-do's' and generally uncertain flim flam like Dudley is coming out with, the market and the economy is going to spank their arses
