Friday, August 28, 2015

Fed's Fischer: Still Too Early to Tell if September Hike Will Happen

It's still too early to tell if recent market turmoil has made a September rate hike more or less compelling, Federal Reserve Vice Chairman Stanley Fischer told CNBC this morning.

In other words, the Fed is driving completely by the seat of its pants.If the market stabilizes over the next 2 to 3 weeks a rate hike is possible, If there is no volatility, there will be no rate hike.

"I think it's early to tell: The change in the circumstances which began with the Chinese devaluation is relatively new and we're still watching how it unfolds, so I wouldn't want to go ahead and decide right now what the case is—more compelling, less compelling, etc.," he said.

He added that "there was a pretty strong case" for a September hike, although that had not yet become a conclusion.



  1. Here's my take:

    Fed needs to put economy in recession before next president takes office. Otherwise, they will have a recession mid term. No politically acceptable.

    Fed is trying to distance itself away from market. If it blows up, then can say we didn't make a final final decision to raise, so not our fault. If market settles, then they will raise.

    Politics is reason for the interest rate hike. They do not want to be trapped mid term with a recession.

  2. My take is that they have no idea what they're doing and they don't realize the scale of the debt pyramid they are propping up. Who knows though?