Lagarde Says the Fed Should Make ZIRP Permanent

September 5, 2015
IMF's Lagarde says Fed should not rush its rate rise decision

"So, what we have said is, the IMF thinks that it is better to make sure that the data are absolutely confirmed, that there is no uncertainty, neither on the front of price stability, nor on the front of employment and unemployment, before it actually makes that move," she said.

Since the data has never and can never be absolutely confirmed, and there has been and always will be at least some uncertainty in price stability, employment, and unemployment, then the Fed should therefore never make a move. It should remain frozen like a deer in the headlights, locked in fear, for all eternity, much like short-term savers have been doing for nearly a decade so far.

Stick with what works, lol. Sigh.

Hey, if you are a short-term saver then don't blame me. I'm just explaining the implications of what she said.

On a brighter note, the Fed could try raising interest rates by 1/8th of a percent, as Larry Kudlow suggests, just to see if our strong and resilient economy could handle the strain of such an epic monetary move. Is some Fed bravado really worth the extra risk though?

September 5, 2015
For the Fed, one-eighth of a point and done

How about a one-eighth-of-a-point rate hike? We could call it one-eighth and done. That would allow for some Fed bravado, but it's so small it shouldn't cause any additional deflationary problems.