Monday, August 31, 2015

Reuters - all the central bankers of the world aren't freaking out at all

Reuters - central bankers at Jackson Hole tell Fed they're expecting a rate hike. OMG! Panic! All the central bankers of the world are telling the Fed they're prepared for rate hikes!

Central bankers from around the world are telling their American counterparts that they are ready for a U.S. interest rate hike and would prefer that the Federal Reserve make the move without further ado.

In private and in public at last week's global central banking conference in Jackson Hole, the message from visiting policymakers was that the Fed has telegraphed an initial monetary tightening and, following a year-long rise in the dollar, financial markets globally are as ready as they can be.

Oh god no! They're as ready as they can be! Sell sell sell!

[...]for Agustin Carstens, the top central banker in Mexico, a rate hike by his neighbor sends an encouraging sign of economic health, even if it does force growth-challenged Mexico to also raise rates within days.

"If the Fed tightens, it will be due to the fact that they have a perception that inflation is drifting up, but more important that unemployment is falling and the economy is recovering," Carstens told Reuters in an interview.

"For us, that is very good news," he added.

Oh god no! That is very good news! Sell sell sell!

"It's a long anticipated event," Reserve Bank of India Governor Raghuram Rajan said on a conference panel, sitting alongside Fed Vice Chairman Stanley Fischer. "It has to happen some time - everybody knows it has to happen - but pick your time."

Those comments were supported by central bankers from Japan, South Korea and Indonesia. When asked earlier this month whether he thought the Fed should hike in September, Bank Indonesia Senior Deputy Governor Mirza Adityaswara told Reuters in Jakarta: "The more certainty there is, the better."

A senior South Korean policymaker echoed that sentiment.

Oh god no! It's a long anticipated event! Sell sell sell!

In all seriousness, it's great that the central bank of India, presently held (ignorantly and incorrectly) as a paragon of right-wing Thatcherite economics, is okay with this. Because I think it's been the idiot Republican fruitcakes who have been panicking this past week.

Because they think everyone on the Fed is an idiot, and they're way smarter.

Maybe this week they'll buy back the stocks that they puked last Monday at a 10% discount to reasonable market price.

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