Peter Schiff’s report on Yellen’s talk about interest rates. Interesting video basically explaining why FED will not increase the rates and that all the talk is just a pretend of rates hike to make it look like FED wants to do it. If the recovery was really so good to justify the rates hike, they would already do it. Keeping rates this low basically says that even FED doesn’t believe to this phony recovery.
I was 100% in the “Raise in September” camp until yesterday. Yellen’s persistence, and greater concentration, on labor market improvements has caused me to believe September is now completely out of the cards. The 5.5% unemployment rate in May stands unchanged from February, so this is the first signs of a plateau. If Yellen wants to see still more considerable improvement from 5.5% unemployment before she raises rates, then I think we’re looking at next Spring.
And this is all assuming we don’t enter another recession–which is totally possible as the last one is now 6 years in the rearview mirror.
Eric
Eric,
it is also a good sign that she herself doesn’t believe that number. If our unemployment rate went from some 10% down to 5.5% and it is not enough and she wants more, then there is something rotten in the Danish kingdom. More and more I am convinced that this recovery is phony and that there is no recovery just an engineered economy and bubble and now I could see that even Yellen doesn’t believe it either. Which is funny.
Thanks for stopping by!