Fed keeps faith in recovery, bumps up expected rate-hike path

Comments (4)
nose2066 wrote:

Maybe instead of just playing with the numbers for the “end point” interest rates, the Federal Reserve should look at how to keep Wall Street from dragging the economy into the next financial crisis???

Jun 18, 2014 2:54pm EDT  --  Report as abuse
1DukeZ wrote:

The way I see it, all economists and their reporters are mesmerized by their brilliance. If you listen objectively to Yellen, what is she really saying?? “We think things are getting better so we’re going to keep on doing what we’re doing!” She’s not saying” We’re going to do this *****and it will drop unemployment by 20% and increase GDP to 5%”. Bottom line, they don’t know what’s the right thing and when that’s the case, you don’t do anything that could remotely sink the ship.

Jun 18, 2014 3:44pm EDT  --  Report as abuse
carlmartel wrote:

I don’t see how Janet Yellen arrived at her numbers in the positive 2% range. The US had -1.0 GDP growth (?) in 2014′s 1st quarter, and the EU, our biggest trade partner, had -0.3 GDP growth. US housing starts fell at -9.2% in April, fell at -6.5% in May, and housing construction permits fell at -6.4% in May, so June’s housing starts are likely to fall. GM has recalled 20 million cars. Severe drought from Texas to California slashes US food production. An oil crisis hits Syria and Iraq and threatens all oil in the Arabian Peninsula if ISIL continues to drive southward.

At the same time, the US and EU are in a crisis with the world’s biggest oil and gas station in Russia that has a military, political, and economic alliance with the world’s biggest car market, oil and gas market, and manufacturer in China. The two allies are working to take $100 billion per year permanently from the US by undercutting greatly US prices for refined oil products. The US imports greater volumes of oil, refines it, and sells greater dollar amounts of refined oil products. Russia starts with its oil, saving over $100 per barrel, refines it or pays China to refine it, and uses shorter shipping distances to the Far East, the rest of Asia, including India, and Africa. The US trade deficit will rise to $600 billion per year and Russia will make $100 billion or more per year permanently at US expense while China earns refining fees.

The US and EU go into recession if the 2nd quarter has negative GDP growth, and I see no way to avoid it extending into the 3rd quarter.

Jun 18, 2014 6:16pm EDT  --  Report as abuse
minipaws wrote:

By then, all of the old people living on interest on their savings will have stessed themselves into their graves. Good plan Fed.

Jun 19, 2014 8:02am EDT  --  Report as abuse
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