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  • Here is what Fed officials have said about timing of a rate hike

    From marketwatch.com

    With the labor market continuing to sizzle, the timing of the first rate hike has come more sharply into focus. Many Fed watchers think the first rate hike will come at the June meeting. They argue the labor market, with the unemployment rate falling to 5.5% in February, shows a strong economy and that the central bank risks falling behind the curve on inflation. On the other side are economists who think the Fed should delay a move until inflation moves higher. They see low price level as a potential worrisome sign of weaker demand in the economy. Where do Fed officials fall? Three Fed officials have come out in ... (full story)

"They argue the labor market, with the unemployment rate falling to 5.5% in February, shows a strong economy and that the central bank risks falling behind the curve on inflation." -

Their argument assumes the 5.5% unemployment rate is indicative of a strong economy. It isn't. Part time jobs are replacing lost full time jobs. The average income of the labor force continues to drop!

Those that are either ignorant or deceivers that are pushing their own agenda do not have strong footing when arguing their positions.
so yes or not to raise ?
Quoting traderathome
"They argue the labor market, with the unemployment rate falling to 5.5% in February, shows a strong economy and that the central bank risks falling behind the curve on inflation." -

Their argument assumes the 5.5% unemployment rate is indicative of a strong economy. It isn't. Part time jobs are replacing lost full time jobs. The average income of the labor force continues to drop!

Those that are either ignorant or deceivers that are pushing their own agenda do not have strong footing when arguing their positions.

To be fair they probably know this, it's very interesting to see how they'll handle the situation. To me it seems like any amount of rate tightening will drop the real economy into a double dip scenario.
Anyone remember when Bernanke said the Fed will raise rates when unemployment hits 6.5%??? Then when it did, the Fed changed their tune and came out with an excuse not to raise rates? lmao. I will never believe in the FED!
  •  Guest
  • | IP XX.XXX.40.86
PA do some research on how the gov't gets unemployment numbers and you will see why this isn't a good measure of the economy. We have the lowest labor market participation in 45 years. If this its the only stat people are basing a rate hike on then they need to reevaluate.
Quoting PA is King
Anyone remember when Bernanke said the Fed will raise rates when unemployment hits 6.5%??? Then when it did, the Fed changed their tune and came out with an excuse not to raise rates? lmao. I will never believe in the FED!
Not to be the devils advocate, but they probably expected inflation to be way higher when they reached 6.5% and oil prices going down arent helping.

I think they will increase the rate by 0.25% is not much and at some point they have to increase it.
Sadly, I will not be on seat during FOMC tomorrow .... , I hope market remains largely neutral to commence movement on Thursday when Philly Fed and job rates are announced.

Fingers crossed
i think PA will be mostly like corrective then.
im sure PA will not simply bashing, but downhill seems expected by trader.IMHO
Quoting traderathome
"They argue the labor market, with the unemployment rate falling to 5.5% in February, shows a strong economy and that the central bank risks falling behind the curve on inflation." -

Their argument assumes the 5.5% unemployment rate is indicative of a strong economy. It isn't. Part time jobs are replacing lost full time jobs. The average income of the labor force continues to drop!

Those that are either ignorant or deceivers that are pushing their own agenda do not have strong footing when arguing their positions.
It's 2007 all over again.

Buy the dip they say,

Fundamentals are strong they argue,

Never had a nation wide housing crash before and highly unlikely to happen Ben proclaimed....
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  • | IP X.XXX.41.241
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  • Story Stats
  • Posted: Mar 17, 2015 7:34am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 9  /  Views: 3,366