He is totally contradictory with his hawkish approach to interest rates rising, but bearish about the economy.
He said that he would favor a rate hike this year if the economy performs in line with forecasts for growth, employment and inflation although within the same breath explained how recent data suggested that the economy is slowing. The main problematic areas he touched on were inventories, the appreciation of the dollar and sluggish global growth.
He also said that the Fed has not been doing very well on communicating, but then went onto say that the Fed has been clear on what is driving their decisions. essentially, he said the economy is too unclear for the Fed to implement their strategy which depends on a predetermined set of economic criteria that the economy is not able to deliver to the Fed. Looks like the Fed are on hold for the foreseeable future and the article of yesterday should be of interest and taken note of.
Read here how the markets have priced out a 2015 Fed hike.
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