Courtesy of Mish.
Still “Too Early”
After all the hemming and hawing by nearly every Fed governor, and despite the fact the Fed has to do something in just over two weeks, the Fed still does not know what to do.
Speaking in Jackson Hole Fed governor Stanley Fisher Keeps September Rate Hike Option on the Table.
With market turbulence casting a cloud over the outlook for US monetary policy, a senior Federal Reserve official strove on Friday to keep the option of an interest rate rise alive at September’s key meeting.
Stanley Fischer, the vice-chair of the Fed’s Board of Governors, said at talks in Jackson Hole, Wyoming, that it was too early to say how the recent market tumult had affected the argument for a move next month, and that no decision had yet been made.
“The change in the circumstances which began with the Chinese devaluation is relatively new and we’re still watching how it unfolds, so I wouldn’t want to go ahead and decide right now what the case is — more compelling, less compelling etc,” he told CNBC business news.
“We’ve got a little over two weeks before we make the decision,” he said. “And we’ve got time to wait and see the incoming data, and see what is going on now in the economy.”
Fisher Not Certain
Here’s the funniest line by Fisher in the interview: “The economy is returning to normal. We’re not certain we are there yet.”
I am certain the economy is nowhere near normal, and the Fed is the primary reason why.
My speech was all prepared for Jackson Hole, but somehow I was not on the invite list. It was a severe oversight by someone.
Where They Stand
Meanwhile, let’s take a look at where all the Fed governors stand.