You did it to yourself.
J-Yell & co. have made a “major macro mistake”—and now keeps compounding it with nonsense like this, according to a former Bank of England monetary policy committeeman, the impeccably-named Danny Blanchflower. There’s going to be some serious egg on faces when they have to retreat.
“There’s a 50/50 chance the next move is a cut...as with all the other rate hikes since 2009 this one will have to be reversed,” Blanchflower, who leans dovish, said in an interview….
“The Fed has seriously lost credibility. No one believes them,” Blanchflower added.
The Fed’s ‘classic” mistake has been to underestimate the negative spillovers from the slowing of China, the world’s number-two economy, he said.
Did Janet Yellen and her band of Federal Reserve policy makers listen in on Apple Chief Executive Officer Tim Cook’s conference call Tuesday?
If they did, they would have heard him bemoan in the starkest of terms that the company had to fight global headwinds during the fourth quarter, during which Apple fell short of analysts’ revenue projections, even if it beat on the bottom line by convincing iPhone fans to keep paying a premium for their coveted toy.
As Cook commented at the top of his prepared remarks: “Our results are particularly impressive, given the challenging global macroeconomic environment. We’re seeing extreme conditions unlike anything we’ve experienced before just about everywhere we look.”
Oh, Janet. You can’t say you weren’t forewarned.
Fed’s December hike was a major mistake, former Bank of England official says [MarketWatch]
Wary Fed Keeps Its Options Open [WSJ]
Economists React to the Fed Statement: ‘No Major Change Yet to the Policy Outlook’ [WSJ Real Time Economics blog]
Yellen Should Heed Apple CEO Tim Cook’s Warning on Global Economy [Barron’s]