Fed Chair Warsh was pressed at last week’s rate-setting press conference on why he held steady in October, but didn’t give a direct answer. Two hours ago, economist Peter Schiff brought the issue back up, publicly accusing him of dodging the most straightforward question.
The outcome of last week’s meeting was to keep the target range at 3.75% to 4.00%, with ten votes in favor and two opposed. The two dissenting officials argued for another quarter-point hike. Warsh explained at the time that inflation had been above target for nearly six years, and that September’s price data weren’t enough to justify acting immediately.
Robin Brooks of Brookings offered another interpretation: framing Warsh as either hawkish or dovish gets the question wrong. He is focused on long-term yields and debt costs. U.S. publicly held debt is now close to the size of the economy for an entire year, and interest expenses exceeded one trillion dollars in the last fiscal year, more than defense spending.
Markets are pricing in nearly an 80% chance of a 25-basis-point rate hike in December. $BTC is currently at 78,112, up 0.64% on the day, and has barely reacted to this clue.
The answer will have to wait for the minutes of December’s meeting.
#美联储 #Bitcoin
The outcome of last week’s meeting was to keep the target range at 3.75% to 4.00%, with ten votes in favor and two opposed. The two dissenting officials argued for another quarter-point hike. Warsh explained at the time that inflation had been above target for nearly six years, and that September’s price data weren’t enough to justify acting immediately.
Robin Brooks of Brookings offered another interpretation: framing Warsh as either hawkish or dovish gets the question wrong. He is focused on long-term yields and debt costs. U.S. publicly held debt is now close to the size of the economy for an entire year, and interest expenses exceeded one trillion dollars in the last fiscal year, more than defense spending.
Markets are pricing in nearly an 80% chance of a 25-basis-point rate hike in December. $BTC is currently at 78,112, up 0.64% on the day, and has barely reacted to this clue.
The answer will have to wait for the minutes of December’s meeting.
#美联储 #Bitcoin
