The minutes from last month’s meeting indicated that members could not agree if a rate hike at the next FED meeting in April was in order. What they did agree on is that risks from a global economic slowdown warranted a cautious approach. One member seems adamant about raising rates and that member is Loretta Mester, President of the Cleveland Federal Reserve. Given the recent U.S. economic strength, she wants a gradual series of rate hikes this year. This group is totally out of control and collectively cannot agree on policy. So with the examples I shared with you in my morning comments, the best path for Ms. Yellen to take is the do-nothing policy.
The United States is not an island but it seems to me some of these FED governors must be living on one, well offshore.
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