{"id":23070,"date":"2017-03-03T21:22:01","date_gmt":"2017-03-04T02:22:01","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23070"},"modified":"2017-03-03T21:22:09","modified_gmt":"2017-03-04T02:22:09","slug":"why-the-fed-needs-to-raise-rates","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23070","title":{"rendered":"Why the Fed Needs to Raise Rates"},"content":{"rendered":"
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Why the Fed Needs to Raise Rates<\/a><\/h3>\n<\/div>\n
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\"yellen<\/a><\/p>\n

I have warned that rates will rise\u00a0BECAUSE\u00a0the Federal Reserve will be criticized if they fail to do so when they are faced with a stock market that is rising. However, while one by one, several Fed officials have all signaled in recent days that the Fed is ready to resume raising interest rates as soon as this month, the real crisis for the Fed will be raising rates will strength the dollar and put even more pressure on Europe and emerging markets. Hence, the 64 billion dollar question is will the Fed abandon international policy objectives for domestic?<\/p>\n

Janet Yellen\u00a0speaks today in Chicago on the topic of the Fed\u2019s economic outlook. The pundits will scan ever possible word for any hint whatsoever of how likely the central bank is to raise its key short-term rate after it next meets March 14-15, 2017. Traders in futures markets have put the probability of a rate hike at 75%, according to data tracked by the CME Group. Last week the odds were just 50\/50. With the rally in the share market this week, many are now fearing a rate hike.<\/p>\n

Many Fed officials are suggesting that the strengthening U.S. economy warns of higher inflation and a surging stock market has confirmed a potential rate hike.\u00a0On Tuesday, William Dudley, president of the New York Fed, said the case for raising rates had\u00a0\u201cbecome a lot more compelling\u201d<\/em>. Robert Kaplan, of the Dallas Fed, said he thought the Fed would likely raise rates\u00a0\u201cin the near future.\u201d<\/em>\u00a0Then\u00a0Lael Brainard, a Fed board member, also said she thought the case for another hike was strengthening:\u00a0\u201cAssuming continued progress, it will likely be appropriate soon to remove additional accommodation.\u201d\u00a0<\/em><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Why the Fed Needs to Raise Rates I have warned that rates will rise\u00a0BECAUSE\u00a0the Federal Reserve will be criticized if they fail to do so when they are faced with a stock market that is rising. However, while one by one, several Fed officials have all signaled in recent days that the Fed is ready […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5496,303,6230,431,451,5479,3650],"class_list":["post-23070","post","type-post","status-publish","format-standard","hentry","category-economics","tag-armstrong-economics","tag-fed","tag-federal-funds-rate","tag-interest-rates","tag-janet-yellen","tag-martin-armstrong","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23070"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23070\/revisions"}],"predecessor-version":[{"id":23072,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23070\/revisions\/23072"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}