Thursday, June 1, 2017

Bad News for Central Bank Independence

Of course, this particular rate hike saber rattle is one of many that has been sounded since the crisis, and as before the Fed has been show to be a toothless tiger. Once again, the negative pressure on the stock market caused by the impending rate hike has triggered the central bank to back off on the idea of rate hikes for yet another quarter. Read the market report following the meeting here.

This certainly fits with Streeck's assertions. For reference, here is a 10 year plot of interest rates:
There is some hope, as we slowly creep back up, but I remain cynical. Six years of the same rock bottom rate does not for faith in monetary policy make.

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