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Rumors Circulating Fed May Pause Rate Hikes In Spring 2019

I’m hearing rumors that the Federal Reserve may announce as pause of rate hikes in spring of 2019. Word is the rumors are coming from https://www.marketnews.com/. The MNI story is being circulated by forex websites like this one.

Reuters also picked up the story from MNI giving a little more credibility to it.

My best guess is that the Federal Reserve purposely released this information to MNI in order to use public perception to ease the stock market sell-off. Remember, under the modern school of Fed policy, the manipulation of public perception is a quantifiable tool to combat inflation and help the jobs market.

As long-time readers know, my own opinion is that the Fed hit the neutral policy rate in March 2018 and should not have hiked in June 2018. Even if this spring-time rumor is true, the fact that the Fed is hiking in December is a big mistake IMO.

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