Wheels within wheels -- something is afoot with the Fed announcement

They are signalling the markets. But are they signalling with the plan to do the opposite? Now the expectation is for a September rate rise, but will they surprise everyone in June? Are they playing games here?

Of course, with every other world currency turning to shit, they may simply sit back and do nothing beyond words, and let the crap sort itself out.

 

February figures show 295,000 more people are in work with the unemployment rate now running at 5.5 percent.

The economy has added more than one million jobs between November and January, the strongest three-month stretch since 1997.

Earnings are also on the rise

Wal-Mart, the world's largest retailer, announced last month it would spend more than $1bn this year to increase pay for about 40 percent of its U.S. workforce.

Fed officials are monitoring pay closely to help determine when to introduce higher borrowing costs to prevent the economy from over heating.

http://www.euronews.com/2015/03/06/us-employment-figures-on-the-up-for-the-12-th-month-in-a-row/

 

Well when the Market collapse happens in September that can act shocked and say "well this came out of the blue, guess that means now the rate rise will have to be put on hold while we print more fiat"

 

What would they gain from playing games with the market? The Fed moves at a sloth's pace and this is a sloth that constantly signals its intention where it will move next yet people are still surprised by the Fed's moves because people think the sloth will not move in the direction where it has signaled it will move.

 

I'm in the camp that says the rate rise will cause a lot of problems and they'll start snowballing. Then the Fed will drop to zero again and then go negative a month or less later. But by then the damage will have been done and it will be 2008 again.

 

What if its a planned collapse though? Maybe they are tweaking the approach with these announcements, watching how the market reacts and analysing the result. Or maybe they are past that and are signalling the market to move it in the direction they desire before taking action to ensure a somewhat orderly collapse that will benefit those who are pulling the strings? If that was the case, their hubris would be stupendous.