Bitch slapping the Obomanation! Trump Says Yellen Keeping Rates Low To Protect Obama!

[Vigilante]

The Donald speaks his mind, and speaks THE TRUTH!

Zerohedge ^ | 10/18/2015 | Tyler Durden
According to Donald Trump, Janet Yellen's decision to delay hiking interest rates is motivated by politics. “This is a political thing, keeping these interest rates at this level,” Trump, the billionaire Republican presidential candidate, said in a Wednesday interview with Bloomberg Television's Stephanie Ruhle. “Janet Yellen for political reasons is keeping interest rates so low that the next guy or person who takes over as president could have a real problem.” That problem spurred by raising rates, Trump argued, could be “a recession or worse.” On the other hand, Trump faulted the Federal Reserve for not having acted sooner. “Yellen...

 

[Katzndogz]

Didn't every one know that already?

 

[S.J.]

Yep, the ONLY option.

 

[DarkFury]

 

[waltky]

The Fed needs a 3% rate just to pay overhead and break even...

Fed rate hike 'makes sense', says U.S. central banker
8 Nov.`15 - Now that the United States is closing in on full employment and inflation is likely to rise to target levels, the "next step" should be to start gradually increasing rates, a top U.S. central banker said on Saturday. "I do think it makes sense to gradually remove the policy of accommodation that helped get the economy to where we are," San Francisco Federal Reserve Bank President John Williams told the Arizona Council on Economic Education.

The comments suggest that Williams, a centrist policymaker who was Fed Chair Janet Yellen's chief researcher when she had his job before moving to Washington, is leaning toward support of a December rate hike. Asked afterward by a reporter whether that is so, Williams declined to say, adding that he expects "a lot of data" between now and then. "I am going to wait and see on that," he said. The Fed has kept interest rates near zero for almost seven years, and the central bank last month said it would consider a rate increase at its Dec. 15-16 meeting, the last of the year.

United States Federal Reserve Board building (rear) in Washington​

The explicit nod to the Fed's next meeting sent traders scrambling to boost bets on a December move, bets that only got bigger after a government report on Friday showed the economy added many more jobs than expected in October. A Reuters poll of top bond dealers also showed a growing number expected borrowing costs to go up next month, with 15 of 17 looking for an increase. [FED/R] Inflation has languished below the Fed's goal for years, prompting a few Fed policymakers to still favor waiting on a rate increase until there is better evidence that prices are indeed firming. On Saturday, Williams said he believes that factors holding inflation down, including weak oil prices and a strong dollar, should soon ebb and allow inflation to bounce back.

Beginning rate hikes sooner than later would allow a "smoother, more gradual process of policy normalization," Williams said. The Fed will likely need to raise rates more slowly than the last time it tightened policy in 2004-2006, because of persistent headwinds holding back growth, he told reporters afterward. Asked how slowly, Williams said investors could draw inferences from the Fed's quarterly economic projections. Raising rates will send a positive signal about the economy and could spur some homebuying that had been deferred, he said.

Fed rate hike 'makes sense', says U.S. central banker

See also:

Jump in US Jobs Eases Future Interest-Rate Hike
November 06, 2015 - Labor market rebound likely easing way to raise interest rates in December

The U.S. said Friday its labor market rebounded sharply from three months of weak job growth, adding 271,000 more jobs in October and likely easing the way for the central bank to raise interest rates next month. The Labor Department reported the U.S. unemployment rate edged down to 5 percent last month - the lowest rate in seven years. The world's largest economy shrugged off a sluggish manufacturing sector, showing strong job growth in professional and business services, health care, retail, food services and construction. Analysts had been predicting a much weaker employment advance last month, only slighter better than the 145,000-a-month average for August and September. Analysts say the robust October hiring is likely to ease the path for the Federal Reserve, the U.S. central bank, to boost its benchmark interest rate next month.

People attend a job fair at Dolphin Mall in Miami. The federal government issues its October jobs report Friday, Nov. 6, 2015.​

Interest rate

Fed policymakers have been closely watching the pace of job growth, the unemployment rate and other business indicators to determine when is the right time to adjust its key rate, at near zero percent for several years during the nation's gradual recovery from the steepest recession since the Great Depression of the 1930s. Mark Vitner, the senior economist at Wells Fargo Bank, one of the largest in the U.S., told VOA that Friday's report was "pretty favorable," and that "It should put to rest the doubts that had cropped up in the last couple months." He said, "It's very likely [the Fed] is going to raise rates in December," possibly by a quarter of a percentage point. Fed chair Janet Yellen said this week that the U.S. economy is generally healthy, and saw a possible rate boost in December as a "live possibility." That could trigger higher borrowing costs for businesses and consumers, but also keep inflation from increasing too fast.

The Fed originally considered raising interest rates months ago, but put those plans on hold after job growth in the U.S. slowed - dipping from more than 200,000 new jobs a month in the first half of 2015. At the same time, U.S. manufacturing has slowed and economies overseas are struggling, with worries about a weakening Chinese economy, the world's second biggest. Still, the U.S. economy has advanced. The unemployment rate is down by half from its worst point - 10.1 percent in October 2009 - when U.S. employers were laying off hundreds of thousands of workers every month. Those job losses caused millions of Americans to lose their homes due to bank foreclosures when they were unable to make home-loan payments.

Jump in US Jobs Eases Future Interest-Rate Hike

 

[ScienceRocks]

10+ million jobs created
5.0% unemployment rate
One of the better job growth rates in the private sector since WWII
Record oil production

All of those are very favorable for Obama...Pumping free shit into wall street is a negative. Of course, the op doesn't realize this...lol

 

[waltky]

At a time when Japan is cutting rates into negative numbers...

Yellen - Fed not likely to reverse course on rates despite risks
Wed Feb 10, 2016 | The Federal Reserve is unlikely to reverse its plan to raise interest rates further this year, but tighter credit markets, volatile financial markets, and uncertainty over Chinese economic growth have raised risks to the U.S. economy, Fed Chair Janet Yellen told U.S. lawmakers on Wednesday.

"I don't expect the (Federal Open Market Committee) is going to be soon in the situation where it is necessary to cut rates," Yellen said. "There is always a risk of a recession...and global financial developments could produce a slowing in the economy," she added. Yellen said she expected continued U.S. economic growth would allow the Fed to pursue its plan of "gradual" rate hikes, but her comments kept the central bank's options open. "I think we want to be careful not to jump to a premature conclusion about what is in store for the U.S. economy. I don't think it is going to be necessary to cut rates."

Investors have all but ruled out further interest rate rises this year, after the Fed raised its fed funds rate for the first time in a decade in December. "The general message she intended to deliver is that additional rate hikes remain the base case, but markets have to stabilise before we see more," said Cornerstone Macro analyst Roberto Perli. Stock indexes worldwide recovered some ground before ending little changed on Wednesday after Yellen's comments eased concerns about the likely path of U.S. interest rates. Worries about Chinese economic growth, poor U.S. fourth quarter corporate earnings, and the impact on capital spending and employment in the energy sector of the slump in oil prices, have roiled global markets in the past month.

The MSCI all-country world equity index ended little changed around 358.08, while the S&P 500 stock index closed steady at 1,851.86. The U.S. dollar fell to a 15-month low against the yen as investors backed away from earlier expectations that the Federal Reserve would continue to raise interest rates. "What Yellen said has been taken positively," said Richard Sichel, chief investment officer of Philadelphia Trust Co in Philadelphia. “Stocks in general are cheaper now than they were three days ago or three months ago, so there’s an opportunity to step in."

YELLEN ACKNOWLEDGES RISKS BUT SEE U.S. ECONOMY HEALTHY

See also:

Yellen warns of rising risks to US economy
10 Feb.`16 Washington (AFP) - Federal Reserve Chair Janet Yellen warned Wednesday that the US economy faced risks from tightening domestic financial conditions as well as global economic turmoil.

Expressing more pronounced concerns than when she last spoke publicly in December, Yellen told a congressional hearing that the outlook for the US economy had become more cloudy. She made no comment on whether the Fed still expected to continue raising interest rates this year, but analysts said her concerns lowered the possibility of an increase in its next policy meeting in March. "Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar," she told the House Financial Services Committee. "These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market."

Yellen said the Federal Open Market Committee (FOMC), the Fed's policy body, sticks by its central view of the economy in recent months, that it will continue to grow at a moderate pace this year. She noted that recent employment gains and a tentative pickup in wages "should support the growth of real incomes and therefore consumer spending." That supported the Fed's pursuit of a "gradual" increase in interest rates, she said.

And she dismissed questions of whether there was a need to actually reduce rates, even into negative territory as the Japanese and European central banks have done. "I do not expect that the FOMC is going to be soon in this situation where it's necessary to cut rates," she said. "Let's remember that the labor market is continuing to perform well."

- China uncertainty -