I am the one who knocks

brainard

The Case For Rate Hike Now Depends On Uber-Dove Brainard

in central banks/Equities/FX by

We’re sorry to be so crass (actually we’re not, but you know, political correctness), but this has gotten ridiculous. Less than 24 hours after three Fed speakers and the threat of a Brainard speech sent the Dow tumbling nearly 400 points, we’ve now got sellside desks analyzing the same damn as-yet unarticulated speech.

Folks, Brainard is an ultra-dove. What do you think she’s going to say? If she signals a rate hike, well then hats off and you can count Monday out as a “green” day. But the chances of that seem limited. I mean give us a break. The dove of doves is going to suddenly come out hawks-a-blazin’ at exactly the inappropriate time? We doubt it. And if she does, then she’s a merely a puppet. Look at this nonsense:

google

We’ve gotten so off-kilter that now Brainard is the hammer? Really?

brainard

Not that she’s not qualified, but for God’s sake, maybe we should just let the President set monetary policy. Surely it couldn’t go any worse than this. Take a look at this, from Deutsche’s Dominic Konstam who is one of the best analysts on the Street:

brainard

(Chart: Deutsche Bank)

Oh great, so we get a uber dove and then we get Kashkari – Mr. crazy-eyes Goldman alumnus who was the architect of TARP?

kash

You have to wonder, at this point, if they’ve lost all sense of reality in the Eccles Building. They keep trotting these people out with worse, and worse, and worse, results. And now they’re going to bring out Kashkari on the same day as Brainard? That borders on the clinically insane.

We hope the good folks at the Fed are long volatility because they are about to create a whole bunch of it by refusing to roll back this barrage of talking heads. Good luck on Monday because frankly, “who the hell knows?”

Leave a Reply

Your email address will not be published.

*

Latest from central banks

yellen

Fed Minutes Summary

Via Bloomberg: Several members judged that it would be appropriate to increase
cb

Why Is QE Failing?

You might have noticed something rather disturbing unfolding over the past half
Go to Top