Courtesy of Mish.
I am quite amused by the parade of Fed governors and presidents still toting the Yellen line that the Fed will hike three to five times in 2016, most likely four.
On January 4, MarketWatch reported Fed’s Williams Foresees Up to Five Rate Hikes This Year.
The Federal Reserve could raise interest rates as many as five times this year, according to San Francisco Fed President John Williams.
“I think something in that three-to-five-rate-hike range makes sense, at least at this time,” Williams said Monday in an interview on the cable news channel CNBC.
Williams said the U.S. economy is “in very good shape” and remains stronger than other major global economies.
The economy is on pace for continued job gains in 2016 after adding an estimated 2.5 million jobs last year, he said.
Williams said he was not surprised or concerned by weak Chinese economic data, which many blame for Monday’s stock-market selloff. China, he said, has been undergoing a pretty significant shift for some time away from manufacturing and toward consumer spending.
Williams said he doesn’t have a stock-market terminal on his desk telling him when the market moves up and down. He said the Fed is focused on the medium term and understanding why the market is moving, “rather than responding to just ups and downs.”
Fed Frontloaded Massive Market Rally
If Williams wants to know why the market is as high as it is, he would gather the Fed members together and instruct them to look in a mirror.
In an act of contrition, Former Dallas Fed president Richard Fisher went to the Squawk Box confessional admitting: “We Frontloaded a Tremendous Market Rally”.
Fisher, no longer a Fed president, is now free to squawk.
If you have not yet done so, please click on that link for a transcript of the video. It’s a real eye opener. …
