Philly Fed Chief Warns That Inflation Is Too High: Rate Hikes Needed

Discussion in 'Economics' started by ByLoSellHi, Feb 7, 2007.

  1. That makes 3 fed officials stepping down this year.

    There might be at least some merit to the idea that they are getting unwanted pressure from current administration to maintain a dovish stance on inflation. The last thing republicans need right now is a quickly declining housing sector and deteriorating corporate profits coupled with rising inflationary pressures.
     
    #11     Feb 9, 2007
  2. dhpar

    dhpar

    nonsense - then why would members with a <i>dovish</i> stance resign....
    nonetheless it is a strange coincidence....
     
    #12     Feb 9, 2007
  3. that's all I'm saying.... interesting coincidence.
     
    #13     Feb 9, 2007
  4. Maybe because there's consensus building that rates need to rise, or because she sees economic problems on the horizon, and doesn't want to work through it on a public entity like the fed reserve?

    Just complete guesses. Her timing is peculiar.
     
    #14     Feb 9, 2007
  5. Power struggle? They have all said the same thing, inflation should come down but its too high for their taste. Economy strong. There is no power struggle, they are all talking from the same play book.
     
    #15     Feb 9, 2007
  6. Bloomberg - Another part of Bies's duties was the Fed's efforts to implement the so-called Basel II accord, which aims to make
    banks' capital requirements more sensitive to the risks. Large
    U.S. banks have been at odds with regulators for months over
    whether their overseas rivals face less stringent standards. ``Basel was a much tougher job than I think she realized,''
    said Edward Kane, a finance professor at Boston College. ``The
    Federal Reserve found that it couldn't deliver on its promises to
    very large institutions. It ended up being somewhat of an
    embarrassment to the Fed that they couldn't implement it as they
    had expected to.''
     
    #16     Feb 9, 2007
  7. She was no dove either lately 3-weeks ago she said she as worried about inflation, "The risks are still there that inflation may go up.'' She voted for every rate hike.
     
    #17     Feb 9, 2007
  8. duard

    duard

    Did anyone catch that wink.

    I love the lunchtime mambo. My personal fave. A drink, a smoke, a pancake, and a few shekels off some fiesty program trades.
     
    #18     Feb 9, 2007
  9. risky63

    risky63

    remember when rubin resigned?

    tick tock
     
    #19     Feb 9, 2007
  10. dhpar

    dhpar

    that's not a definition of a dove. Then we would have only hawks in the past 3 years. Dove is more a philosophical leaning in my textbook...
    It is true that it is harder to judge Bies as she was "only" a member of Board of Governors, i.e. not President, and hence sort of less independent (at least judging by historical patterns). Also her functional responsibility was quite uniquely specified - as mentioned above.
    Also to say that everybody is playing from the same playbook is a bit oversimplification of the Fed process. The 2-3 thesis are always the same - correct - but to understand what individual members think you need to get behind that (and not only read all their speeches but to watch them with reactions to Q/A).
    You can make a good living from paying attention to individual traits of people in Fed...:cool:
     
    #20     Feb 10, 2007