Meraglim Blog

All Systems Are “Go” for a Fed Rate Hike in December, With More to Follow

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Federal Reserve Vice Chairman Stanley Fischer is seen during the Federal Reserve Bank of Kansas City’s annual Jackson Hole Economic Policy Symposium in Jackson Hole, Wyoming, August 29, 2015. REUTERS/Jonathan Crosby

We’ve warned you for months that the Fed is on target for a rate hike in December. We said this before the election of Donald Trump as president and made the point that the rate hike was not dependent on the outcome of the election. The December rate hike was baked in before the election. This was due to rising inflation fears, the desire to hike rates so the Fed can cut them in a recession and the Fed’s political decision not to raise rates at the November FOMC meeting because of the pending election and a desire to lay low.

We’ve also told you that there are only four voices at the Fed worth listening to — Janet Yellen, Stanley Fischer, Bill Dudley and Lael Brainard — all of the other Fed heads can safely be ignored.  Click here to see how one of those power players, Stan Fischer, has now confirmed our view that the rate hike is coming. That comes as no surprise. What is surprising is Fischer’s comment that he is “reasonably confident” that a Fed rate hike would have no spillover effects in emerging markets. That’s troubling and almost certainly represents wishful thinking on Fischer’s part. In fact, there’s already a global dollar shortage. A stronger dollar resulting from a Fed rate hike could tip emerging markets into a full-blown liquidity crisis.

November was volatile because of the election. December may be even more volatile as the Fed leans into the dollar shortage and makes matters much worse.

– Jim Rickards, Meraglim Chief Global Strategist

IF THE SCIENCE IS NOT ON YOUR SIDE, JUST TRY THREATS

It’s clear that good science does not support the extreme claims of the climate alarmists. Yes, there is such a thing as climate change, but it’s slow, difficult to predict and almost impossible to model because of the complexity of the process. The climate alarmists have grabbed most of the headlines for the past ten

Read More »

WHY TRUMP WILL WIN REELECTION: NOT POLLS OR PUNDITS; JUST COMMON SENSE

Political analysts use polls, betting odds, historic trends and other inputs to make their (usually wrong) political predictions. We all remember that “experts” said Hillary Clinton would win the presidency in 2016 (they gave her a 92% chance on the morning of the election), and that the UK would vote to “remain” in the EU

Read More »

HERE’S ANOTHER ELITE WITH ANOTHER PLAN TO TAX AWAY YOUR WEALTH

The elites never rest when it comes to devising new ways to take your money through taxes, inflation or outright confiscation. The latest Trojan horse the elites are riding to take your money is climate change. The climate does change over long periods of time for reasons that are not well understood except that they

Read More »

KRUGMAN SHOWS HE KNOWS LITTLE ABOUT ECONOMICS AND LESS ABOUT FINANCE

We already knew that Nobel Prize winner Paul Krugman knows almost nothing about economics. Now, we see from this article that he knows nothing about banking either. Krugman claims that the repeal of Glass-Steagall and the actions of banks in general were not the cause of the 2008 financial crisis. The conventional wisdom is that Lehman Brothers,

Read More »
Scroll to Top