Speaking of Buridan’s ass, Wells Fargo chairman Dick Kovacevich says cat CNBC that the Fed should raise rates but probably won’t:
The Federal Reserve should raise interest rates next week and if it doesn’t it will be bad for the economy, former Wells Fargo chairman and CEO Dick Kovacevich said Friday.
“They should do it now. Everything is aligned. The market expects it sometime, so do it sooner than later. It will be expected because it’s not a big deal. If you remember all the anxiety and concern about QE3 when it was ended, it was a big yawn and it will be a big yawn this time,” he said in an interview with CNBC’s “Closing Bell.”
What’s more, he believes not increasing rates also sends a bad signal.
“If you don’t raise rates, you are signaling that you have no confidence in the continued economic growth of our economy. That would be a disaster.”
As I’ve said before the Fed has a dual mandate: maintenance of stable prices and increasing employment. I wish Mr. Kovacevich had explained how raising rates at this time will satisfy either of those mandates.
“If you don’t raise rates, you are signaling that you have no confidence in the continued economic growth of our economy. That would be a disaster.â€
More voodoo – appease the spirit world and material prosperity will follow!
There’s an awful lot of voodoo-type thinking going on at the moment, if you pay attention. Racism would go away if we got rid of Confederate flags/monuments/bodies. (My favorite was the group in Tennessee, I think it was, that started digging up Nathan Bedford Forest’s grave because they were certain that desecrating graves would help.) The economy will do better if we all think positive thoughts. (Harold Hill’s Think Method voodoo! I hope Meredith Wilson’s estate gets a piece of the action!) We’ll get rid of homophobia if we burn photographers/bakers/county clerks at the stake.
Voodoo everywhere….
Critical thought seems to be a lost art. Unless you consider that people want to be accepted MORE than they want to be truthful. ( I have a lot of gay , black, Muslim friends)….. just like the rest of you.
The monetary cult has lost all sight of the dual mandate. Policies are endlessly employed not because they work but because the monetary cult priesthood must excercise its authority if it hopes to retain that authority. Efficacy and prudence have become less than an afterthought.
Ben, well said!