Afternoon Comedy Break with Fed Governor, James Bullard

TND Guest Contributor:  Rory Hall | The Daily Coin |

As my colleague Dave Kranzler has pointed out recently, the Federal Reserve Governors are playing a “good-cop, bad-cop” scenario reminiscent of an Abbott and Costello movie. On the one hand are the sociopaths stating that rates should not be raised until 2016. On the other are the “bad cops” like James Bullard, President of the St. Louis Federal Reserve, who continuously insists that rates need to be raised now. Well, James, it will never happen. Not today, nor tomorrow, nor any time before the whole system blows.

As reported by Bloomberg TODAY March 24, 2015:

Investors risk suffering a Federal Reserve interest-rate rise surprise unless market expectations for future tightening line up with the outlook of policy makers, said St. Louis Fed President James Bullard.

Bullard said active discussion by the Fed about the timing of the first rates increase since 2006 ought to ensure that it doesn’t come as a shock when policy eventually moves.

“But there is this issue about the market expectation of the rate path being different from the committee’s expectation,” he told reporters after speaking at an event in London on Tuesday. “So if we get all the way to the day we actually make the decision, and end up surprising the markets on that day, there is going to be a reconciliation on that day and that could be violent.”

The Fed last week opened the door to a rate rise from June onward by dropping an assurance to be “patient” on the timing of liftoff in the policy statement that it released following a meeting of the Federal Open Market Committee. Rates have been held near zero since December 2008.

This is nothing more than petty grand-standing by Bullard in an attempt to make himself and his position seem relevant. Neither he, nor his position has had one dollars worth of effect on the market since the introduction of high frequency trading combined with Quantitative Easing (QE) in 2008. It’s been a six year long nightmare that will never, ever reverse.

Bullard’s role as “bad cop” is to inject the fear of interest rate hikes into the market. This provides “guidance” support for the U.S. dollar.

Officials last week marked down their quarterly forecasts for the economy and interest rates, almost halving the median projection for the federal funds rate to 0.625 percent by end-2015 from 1.125 percent in their December estimate.[Source]

If James Bullard comes out and begins discussing raising interest rates again will that mean the they will actually drop to 0.312 percent?

That, ladies and gentlemen, is what I call a sick joke. When criminals speak, you better hold tight to your wallet and your family because it means they are about to take something that belongs to you.

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