Friday, December 4, 2020

Tag: The Fed Has Hit the ‘Pause’ Button

The Fed Has Hit the ‘Pause’ Button

by Jim Rickards, DailyReckoning:
Last week the Fed raised the white flag on further rate hikes. There won’t be any for the foreseeable future.

No rate hikes are coming at the July, September or November Fed FOMC meetings. The earliest rate hike might be at the December 13, 2017 FOMC meeting, but even that has a less than 50{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} probability as of today. I’ll update those probabilities using my proprietary models in the weeks and months ahead.

The white flag of surrender came in two public comments by two of the only four FOMC members whose opinions really count. The four voting members of the FOMC worth listening to are Janet Yellen, Stan Fischer, Bill Dudley and Lael Brainard.