Macroeconomic round up: 'God wants [the Fed] to keep rates on hold'
Jason Walls breaks down the week's biggest news in macroeconomics on NBR Radio, and on demand on MyNBR Radio.
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A policymaker in the US told Federal Reserve chairwoman Janet Yellen to consider keeping interest rates on hold until May because “it’s God’s plan.”
“God’s plan is not for things to rise in the autumn. As a matter of fact that’s why we call it fall. Nor is it God’s plan for things to rise in the winter through the snow.
“God’s plan is for things rise in the spring. So if you want to be good with the Almighty, you might want to delay until May.” These are actual comments by US Republican Congressman Brad Sherman.
Despite the ludicrous comments – which seemed to imply Mr Sherman had been selected by the Creator as His direct representative on Capital Hill – the markets interpreted Janet Yellen’s testimony as a good indication rates will be hiked in December.
She said a December hike could be a “live possibility.”
A December hike was reinforced by the October jobs figures, where US non-farm private employment rose by more than 180,000 – beating expectations.
Although the data helps give a bit more guidance around a rate hike timing, it casts a dark cloud over emerging economies, such as those in South America.
The IMF has given a pretty bleak outlook on the continent, suggesting some countries including Brazil and Peru are looking down the barrel of further economic strife when US rates are raised.
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Fri, 06 Nov 2015
Fri, 06 Nov 2015
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Macroeconomic round up: 'God wants [the Fed] to keep rates on hold'
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