The Pause Which Won’t Refresh

Needless to say, the desperate boys and girls in the casino are now literally holding their breath for what they hope to be the Fed’s surrender announcement on the morrow. Not that it will likely defer the pinprick 25 basis points rate increase scheduled for the December meeting.

After all, how could it? At the pending target of  @2.4%, the Federal funds rate would at long last exceed the CPI inflation rate (currently 2.2% Y/Y) for the first time in a decade.

Instead, the great hope in the casino is that through some artifice of word-play, such as removal of the term “gradual rate increases” in their post-meeting statement, that the cowardly Keynesians domiciled in the Eccles Building will signal “one and done”.