Monday, August 24, 2015

BREAKING: Fed Bank Prez Says Still Expects Rate Hike This Year

 The head of the Atlanta Federal Reserve says he expects the Fed to raise interest rates "sometime this year,"

In a speech in Berkeley California, Dennis Lockhart predicted the U.S. economy would continue to experience "moderate growth," though he acknowledged that a stronger dollar, falling oil prices and the recent Chinese currency devaluation have made it harder to predict.

The market may react to his statement, but as I have pointed out before, regional Fed presidents, outside of the New York Fed president, do not have much influence.

That said, I doubt Lockhart's view is much different from the important monetary policy troika of Fed chair Janet Yellen, vice-chairman  Stanley Fischer  and NY Fed President William Dudley.

Unless we see a full-fledged crash--which can't be ruled out--- a rate hike will occur, possibly at the September 16-17 FOMC meeting.



  1. The NY Federal reserve bank exercises extraordinary control over the Fed relative to the other Fed banks. Wall Street owns the NY Fed bank, therefore the Fed will serve Wall Street.

    There will be no rate hike in September. If anything, another round of QE will be announced. Fed officials always talk like hawks and act like doves when its decision time at the FOMC. They know who butters their bread.

  2. so much for the rate rise spruiking that was going on here, its never gonna happen.

    here comes qe4