Yet another Fed official is talking. This time, it's San Francisco Federal Reserve bank president John William and guess what? He says nothing new.
It seems every time any of these guys (and gals) open their mouths, the newswire gets filled with people analyzing their every word when in reality, they NEVER say anything new.
So my question is, do these Fed heads just like the fame? Let's just look at what Williams said on Sunday - you guessed it...nothing!
ZeroHedge covered Williams' comments, highglighting the most important message that came out of his latest media run: "I don't know what we'll do in June." (Gee, thanks!)
He also told Fox News' Maria Bartiromo that he doesn't expect the U.S. presidential election to prevent the Fed from raising interest rates this year.
“We’ve proven over and over again that we can act in presidential election years,” he said. “We’ve done that before, we’ll do it again.”
He added that the U.S. central bank is as "apolitical" as possible and any rate decisions would be based "on the data, based on our analysis."
Why is everyone so caught up in his comments? His message has given me no clarity as to when the Fed will start tightening again, and I'm starting to think that Fed officials are just liking the attention.
Rate hike or not, these central bankers continue to relay the same message: they want to raise interest rates but they can't just yet. And even if the Fed does raise rates in June, it will ONLY be by 25 basis points. So, what's the big deal?
The Fed wants, nay needs, to raise rates not only so that people believe that the economy is getting better, but also so that if ever the economy goes to s*^% (excuse my French), they have a backup plan - cut rates again.
RANT OVER.
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