Menelik II
I wanna see receipts!
Get ready for 'regular Fed rate hikes all year,' ex-Treasury official warns
Federal Reserve will increase interest rates next week, as many central bankers have been recently hinting, and that's only the beginning, according to Brookings Institution's Aaron Klein, a Treasury staffer during former President Barack Obama's administration.
"The Fed is racing to get to 1.5 percent for the interest rate so that they can get above the next recession and get out in front," Klein said Monday on CNBC's "Squawk Box."
He said the Fed also wants to create "wiggle room" in case policymakers need to cut rates down the road in the event of an economic slowdown.
In a speech Friday, Fed Chair Janet Yellen was rather transparent about the possibility of a rate hike at the central bank's March 14-15 policy meeting.
"There were false starts year after year after year," said Klein, an economic studies fellow at Brookings and a former deputy assistant secretary for economic policy at Treasury. "I think people are going to start to get used to regular Fed rate hikes all year, starting now."
This combined with China allowing their currency to weaken is not a good look. But they had to start at some time.
Federal Reserve will increase interest rates next week, as many central bankers have been recently hinting, and that's only the beginning, according to Brookings Institution's Aaron Klein, a Treasury staffer during former President Barack Obama's administration.
"The Fed is racing to get to 1.5 percent for the interest rate so that they can get above the next recession and get out in front," Klein said Monday on CNBC's "Squawk Box."
He said the Fed also wants to create "wiggle room" in case policymakers need to cut rates down the road in the event of an economic slowdown.
In a speech Friday, Fed Chair Janet Yellen was rather transparent about the possibility of a rate hike at the central bank's March 14-15 policy meeting.
"There were false starts year after year after year," said Klein, an economic studies fellow at Brookings and a former deputy assistant secretary for economic policy at Treasury. "I think people are going to start to get used to regular Fed rate hikes all year, starting now."
This combined with China allowing their currency to weaken is not a good look. But they had to start at some time.
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How the fukk are wages going to go up if the dollar gets weaker? If anything wages will go DOWN. We aren't even calculating existential factors to the market yet.