The Federal Reserve must be prepared to raise interest rates if necessary before the jobless rate has fallen to "acceptable levels", or risk losing its inflation-fighting credibility, a senior Fed official said on Tuesday.
I call it the battle of Fed Speak vs. Tobacco Smoke Enema.
Tobacco Smoke Enema:
Change in the quantity of the Monetary Base is one of many quantitative easing levers used by the Fed. As to the quantity of money out in the system, the Fed has direct control over the “monetary base” through open market operations. The rate at which the Fed pumps up the "monetary base" has up ticked again - so much for the monetary discipline. Why has the Fed once again pressed down on the accelerator? In other words, why and why now despite the active PR campaign promoting discipline?
Board of Governor Monetary Base, Adjusted for Changes in Reserve Requirement Year-over-Year Change Since 1959 (YOY):
Board of Governor Monetary Base, Adjusted for Changes in Reserve Requirement Year-over-Year Change Since 2007 (YOY)
Source: reuters.com
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