Friday, August 26, 2011

Can Ben REALLY do what he wants?

Hoenig Says U.S. Should Focus on Fixing Finances, Fed Has Done All It Can

Three Dissenters Fisher was one of three regional bank presidents to dissent at the Fed’s most recent meeting this month, posing the most opposition on the FOMC in almost 19 years. The Dallas Fed head joined Charles Plosser of Philadelphia and Narayana Kocherlakota from Minneapolis in preferring to maintain a commitment to keep rates low for an unspecified “extended period.” Hoenig, who has led the Kansas City Fed since 1991, said he would probably oppose the idea of the Fed taking further action to stimulate the economy. He said he still continues to support the central bank’s dual mandate for achieving price stability and full employment. “The mandate is quite fine,” Hoenig said. “We need to follow the mandate.” This links to the

Posted by techieman @ 02:23 PM (2067 views)
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16 thoughts on “Can Ben REALLY do what he wants?

  • … whoops sorry … This links to “Bernanke must not push QE3 at Jackson Hole” in the FT which i cant post in full…. apparently.

    I dont want to pre-empt what will be said today (for one thing it could obviously blow up in my face, which would add insult to injury given some S&P positions), but the political climate against the fed seems to be gathering momentum..

    here’s a quote from a modern day JR Ewing “If this guy prints more money between now and the election, I dunno what y’all would do to him in Iowa but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treacherous – or treasonous in my opinion,” said [Rick] Perry. http://www.guardian.co.uk/world/2011/aug/16/rick-perry-ben-bernanke-treasonous

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  • ‘Printing more money to play politics at this particular time in American history is almost treacherous – or treasonous in my opinion’

    ~ How long does it take for a penny to drop. Mr Texas Perry to the rescue? Forget it once again Ron!

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  • A couple of articles from UK publications:

    The first from FT Alphaville.

    The second from The Independent.

    There’s growing agreement that further stimulus is growingly futile. Sooner or later you’ve got to learn when you’re beaten and take the cold turkey. Let’s see an end to kindergarten economics. Step forward the tough and responsible.

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  • ‘Step forward the tough and responsible.’

    ~ If only they got airplay. No dill.

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  • be careful out there…the last person to challenge the fed was killed

    JFK

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  • taffee

    I’m under the radar. I would relish the challenge – as would many!

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  • be careful out there…the last person to challenge the drug culture was killed

    2PAC

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  • general congreve says:

    @5 – Well the stock markets are see-sawing, seems a certain another market hadn’t actually priced in QE3 already and is doing just fine. Win-Win 😉

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  • @general C – have you been buying Brent Crude again (LOL)

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  • Can Ben REALLY do what he wants?

    I think you will find that he can – he has all his mates from GS and Wall Street to back him up. Moreover, he has promised that interest rates will be kept low till 2013 – he ain’t going to be doing that with the help of the tooth fairy alone…….

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  • @8 hpw

    Clueless.

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  • @ Dill

    I know it’s difficult for you to accept, but that’s what is most likely to happen as QE is the only thing that is holding interest rates down.

    I think you need to go away and do a little bit more reading and thinking – if you know how to – as you haven’t written anything interesting so far.

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  • Handbags at dawn ladies.

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  • hpw some time go i said that its not what BB wants to do but what he will be allowed to do politically. So as i said doesnt “the most opposition on the FOMC in almost 19 years” actually tell you something ? He may be given one last chance…. but all you seem to be doing is maintaining your position in an evolving situation. Reminds me of …

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  • dill @ 2. Yes I have read both articles you posted – and actually quite a few more on this subject. Thanks for posting and the guardian one in particular makes perfect sense to me. It seems BB wants (at the very least) policymakers to step up to the plate with some fiscal support for how far he has gone so far.

    Ben – what has happened mate? I thought you could always use the printing press and helicopter drop unilaterally ad infinitum? Isnt that what you said? Why the retreat now? I thought Rambo of the central banking world could take on the threat of deflation on his own?

    To be fair he may be seeking a integrated fiscal / monetary back-scratching with policymakers over the next week or so and stand shoulder to shoulder with Obama??!?!. That would make sense as the time period to see the real short squeeze in the markets. Relative to those lets see what happens next week.

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