• 526 days Will The ECB Continue To Hike Rates?
  • 526 days Forbes: Aramco Remains Largest Company In The Middle East
  • 528 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 928 days Could Crypto Overtake Traditional Investment?
  • 933 days Americans Still Quitting Jobs At Record Pace
  • 935 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 938 days Is The Dollar Too Strong?
  • 938 days Big Tech Disappoints Investors on Earnings Calls
  • 939 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 941 days China Is Quietly Trying To Distance Itself From Russia
  • 941 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 945 days Crypto Investors Won Big In 2021
  • 945 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 946 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 948 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 949 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 952 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 953 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 953 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 955 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Fed Drops Word 'Patient'; Door Open, But For What?

As expected, the Fed Drops 'Patient' Stance. Bloomberg says this "Opens Door to June Rate Increase".

The Federal Reserve dropped an assurance it will be "patient" in raising interest rates, ending an era in its communications policy and opening the door for higher borrowing costs as early as June.

"An increase in the target range for the federal funds rate remains unlikely at the April" meeting, the Federal Open Market Committee said in a statement Wednesday in Washington. The panel said it will be appropriate to tighten "when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term."


Inflation in Eyes of Beholder

Inflation as measured by asset prices is rampant. Inflation as measured by the Fed is actually negative.

Consumer Price Index Chart

The experimental CPI, for those over 62 is in positive territory is 0.51%. See Experimental CPI Index; BLS Disclaimer vs. Mish Recommended Disclaimer

That leaves us wondering about the nebulous definition of "medium term". Others may be scratching their heads over "further improvement in the labor market".

How much more improvement does the Fed want? Or does the Fed not believe all these glowing labor reports either?


Door Open, But For What?

Given all the above mush, the door is open for the Fed to do whatever it wants. That's precisely as it has always been actually.

If you think anything meaningful really changed in the Fed's statement, you are mistaken. The Fed always does whatever it wants, making up excuses over time, to do just that.

 

Back to homepage

Leave a comment

Leave a comment