The data prostitutes spoke again this week after their usual two-day meeting, hinting that the door for a December interest rate hike was still ajar.
The template once again centered on their shop-worn and now nearly silly, meaningless drivel about if the data supported a reason for the rate hike. One wonders when someone will come up with a television game show based on which outfit--politicians or central bankers--inspire the least confidence among the masses.
A rate hike when it does come will most likely boost the dollar making the lives of US multi-nationals even more difficult. A good number of the S&P 500 companies earn a good portion of their earnings overseas.
Stocks reacted to the news as expected with the Dow rising nearly 200 points. In September after the market swooned before Fed officials swooned themselves on hiking rates, the Fed pointed to lack of global growth, most particularly in China. Recall when this whole charade started back in 2008 the same Fed was interested only, they opined, in restoring U.S. growth.
After the market swooned in September the Fed sent out six of its hand-picked propaganda ambassadors to assuage investor nerves in its on-again-off-again nonsense. As the free money continues to flow, the Wall Street Journal today reports Fed Chair Janet Yellen is "planning to become more outspoken in the lead up" to the so-called big December decision.
All this data-dependent palaver is colloquially called analysis-paralysis. It's Fed speak for we are really clueless. As we said, the hinting goes on.
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