Federal Reserve Governor Daniel Tarullo, who has strongly favored keeping benchmark interest rates lo , signaled he’s now more open to raising borrowing costs, reports Bloomberg.
“The discussion of when is the appropriate moment for raising rates in order to prevent the economy from overheating too much is now, from my point of view, more on the table than it may have been before,” Tarullo said Tuesday at an economic and political forum in Washington.
A Decmber rate hike is a very strong possibility/
I am now taking over-under bets on how many rate hikes are made by the Fed before Trump tweets out that the Fed is trying to sabotage his presidency.
Trump will eventually turn anti-Fed but it won't be for Ron Paul anti-Fed reasons, he will want to slow the rate hikes.
-RW
Trump has set up the scenario for conflict with the Fed if they materially raise rates and, in accordance with Austrian-lite doctrine, markets and/or the main street economy crashes. It was a smart gambit on his part. Due to his warnings, the people may turn against the Fed and any of ots moves that appear politically motivated. Shades of Jackson vs. Biddle and the 2nd Bank of the US.
ReplyDeleteAgreed. Buckle up boys and girls. 2017 is going to be a wild ride.
ReplyDelete