Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
On first listen this is the only major change I heard from the Fed statement just announced. I am wondering at this point if we’re going to get an interest rate hike in my lifetime.
Not that the Fed has good economic modeling based on the past half decade, but this level of accomodation means they don’t buy into any of the recent economic strength.
The Fed repeated its description of the economy as “expanding moderately” and now calls inflation “subdued” rather than noting that it had moderated. The dissenter, Richmond Fed President Jeffrey Lacker, preferred to omit the description of the time period over which conditions are likely to warrant exceptionally low rates.
This will of course create some massive dislocations down the road. Savers continue to be punished….debtors and speculators applauded.
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