December 15 FOMC Member's words

December 15 FOMC Member's words

President of New York FED Williams
"We are not particularly considering cutting interest rates.
I'm focusing on the question ahead right now, and as Powell said ... is monetary policy tight enough?"

President of Chicago FED Goolsbee
"It's clear that we're approaching a balanced environment, and seeing inflation go down as it does,
We are now considering whether it is tight enough or if it affects the employment side excessively."

Governor Goolsbee says there is a chance of a cut.

If the FOMC members were able to vote according to their own ideas, like the Supreme Court, they could put Williams and Goolsbee on opposite sides.

But the FED puts pressure on the chairman to make similar decisions.
This creates a lot of confusion.

Members of the FED are nominated by the President of the United States and approved by the Senate to speak for the American people.
If you always agree with the Speaker, they don't represent the American people, they break the pledge they made to the Senate.

Similarly, FED governors are approved by their respective districts and should speak for them.
As expected, if you always agree with the chairman, you don't do this either.

If the Supreme Court were to operate this way, there would be a revolution in the country.

No other central bank votes this way.

The "unpredictable chart" represents the number of objections from the FED every four years.
There have only been five times in the last four years.
This is the second lowest in 70 years.

It is important to note that 02-07 is the lowest period, which is when the bubble formed.

If you look at the 'joke' chart on the FED, it shows that not only is there no opposition, but the FOMC has just become a joke-taking conference.
These jokes disappeared when monetary policy blew up the economy once and for all.
If you look at the December 17, 2017, FOMC transcript
"I don't know why the uptick happened. But it's quite broad, and looking at it, Santa thinks the world's central bank chairmen have been pretty good this year.

Well... Santa seems a little skeptical about inflation.

The FOMC transcript will be released in five years.
The most recent one is in 2017.
The 2018 transcript won't be available until the end of January.

We are currently seeing the lowest opposition since 2005.
That's despite inflation rising for the first time in 40 years.

But we won't know for five years whether FOMC was a stand-up comedy or not.