The Fed Can’t Raise Rates Because The Sky Is Blue

We Cannot Raise Rates Because…

This is starting to become outright laughable if it weren’t such incompetent and irresponsible interest rate policy, or lack of policy, by the Federal Reserve. Forget unemployment, GDP, Structural Economic Issues, Wages, or Inflation – now the reason the Federal Reserve cannot raise interest rates from recession-era levels is because the dollar is too strong. Talk about drawing the line, moving the line back or forward; now the Federal Reserve is trying to redefine what constitutes a ‘line’ in the first place. 

Fed Out of Financial Markets

We are not talking about raising the Fed Fund`s Rate to 4%, we are just talking about raising rates more in line with basically a normal functioning economy growing at 2 plus percent on an annual basis with an unemployment rate in the fives. If the Federal Reserve cannot raise rates after seven long years, this either says a lot about their lower rate and QE strategy in the first place, i.e., it hasn’t worked, or they need to quit making excuses and raise the freaking rate already. This has gone on long enough; I want the Federal Reserve out of financial market manipulation with absurdly idiotic interventionist policies. There is something seriously wrong if the Federal Reserve cannot raise the Fed Fund`s Rate a measly 100 basis points after seven longs years of ZIRP!  Seven years is an entire business and economic cycle, shoot, the economy has been at ZIRP for so long it literally could cycle back to recession just because it has been so long, and business cycles have normal patterns of growth and contraction, we did study this in business school, this is economics 101!

Read More >> The Fed Can’t Wait For Wage Inflation to Raise Rate

Newsflash: “Imperfect World”

If I hear another idiot dove discuss another obscure reason why they need to continue with ZIRP methodology because Apple had a bad quarter, or Spain has high unemployment, or China is trying to rebalance their economy, or Venezuela has a social system that sucks, or Germany needs to diversify from Luxury Automobiles, or 50 people in Developed Economies die from Ebola, or the Middle East is in conflict, then the Federal Reserve should just come out and state that due to an ‘imperfect world’ they can never raise rates, and the Fed Fund’s Rate has now been renamed the ZIRP New Normal Rate for eternity.