Many Wall Street traders are calling for the chairlady to impose a gag order on all Fed members as their continued comments only cause unnecessary volatility in the markets. I can’t agree more. Let the minutes of the Fed meetings speak for themselves.
All eyes on Jackson Hole, Wyoming this morning, as we await comments from the most powerful woman in the world, Chairwoman Janet Yellen.
CME Fed-watch Tool this morning reveals a 21 percent chance of a rate hike at the September meeting. Let’s see if the rate hike needle moves today after the Fed lady’s comment at 10 am Eastern Time.
In the meantime, the chatter in the market place overnight is that there was some Central Bank buying in gold overnight ahead of the Fed Chairwoman’s comments. If that’s true, and I don t know how reliable that information is, I find it interesting in the timing of the purchase.
As I’ve been reporting all year and still believe, the Fed will NOT move with a rate increase this year as the data reported is still “wishy washy” at best.
James Bullard, President of the Federal Reserve Bank of St. Louis and a voting member of the Federal Reserve, reported today on CNBC that September might be a good time to raise rates. But he also said, “I’m agnostic on exactly when we do that.” He said he’d like to hike rates for the second time in ten years on good economic news. Bullard also said, “bad rate guidance has hurt the Fed’s credibility.”
Cleveland Fed president said this morning, “We may not be communicating as we should.” REALLY?
That’s why many Wall Street traders are calling for the chairlady to impose a gag order on all Fed members as their continued comments only cause unnecessary volatility in the markets. I can’t agree more. Let the minutes of the Fed meetings speak for themselves.
Any rate hike news is like a Super Bowl event, so stay tuned today as we wait to see if the chairlady gives the any hint on her position. Is she a dove or a hawk on an interest rate hike.
Author Name: Walter Pehowich
Walter Pehowich is the executive vice president of precious metals investment services for Dillon Gage with over 38 years of experience in precious metals investment services. His career began in 1977 at Bache (which evolved to Prudential-Bache Securities and then Jefferies Investment Bank). While at Jefferies, he served as senior vice president with oversight of investment grade precious metal products. Pehowich holds a National Futures Association (NFA) Series 3 license, authorizing him to advise and sell alternative investments in commodities and futures markets.