Place Your Bets on Who Will Swim Upstream at This Week's FOMC Meeting
Gee, I wonder.
Happy first day of Summer, kids, and don't go expecting that rate hike just yet.
Business Week (June 3):
Kansas City Federal Reserve Bank President Thomas Hoenig said the U.S. economic recovery has the momentum to sustain itself and called for an increase in the target federal funds rate to 1 percent by the end of the summer.
“The first step toward a more normal policy is to move policy rates off zero, back toward neutral,” Hoenig said today in a speech in Bartlesville, Oklahoma. “With the improvements in market conditions and liquidity, and with an improving outlook, the FOMC would be prepared to raise the funds rate target to 1 percent by the end of summer.”
Yes, yes, that's Summer of 2012 if we're lucky. I'm going to go out on a limb here and guess that Hoenig's esteemed colleagues are practicing the dirty looks they'll be giving him tomorrow as we speak. He must be referring to some alternate universe FOMC because the one I am thinking of isn't even considering raising rates until at LEAST doomsday, if not later.