And the Sadomonetarism Continues

Madness, pure madness

>The Federal Reserve Open Market Committee just raised rates again, this time by 25 basis points (¼%).

Obviously, I think that this is the wrong move.  I think that this is obviously the wrong move.

Of course, the incentives for the Federal Reserve are perverse, as I have noted before.

There will be no soft landing, in fact I think that we are already in a recession:

Federal Reserve officials signaled they might be done raising interest rates for now after approving another increase at their meeting that concluded Wednesday.

Yes, they talked about it.

We're going to have rate hikes at the next two meetings at least, because:

1. The fed would rather be perceived as tough than to be right.
2. They are determined to put the forces of capital in a position of dominance over labor
   

………

The unanimous decision marked the Fed’s 10th consecutive rate increase aimed at battling inflation and brings its benchmark federal-funds rate to a range between 5% and 5.25%, a 16-year high.

………

“I think that policy is tight,” Mr. Powell said. But he added, “we are prepared to do more if greater monetary policy restraint is warranted.”

In a hole and keeping digging.

Until now, officials have been looking for clear signs of a slowdown to justify ending rate increases. But Mr. Powell indicated that calculation could shift now, and officials would need to see signs of stronger-than-expected growth, hiring and inflation to continue raising rates. The Fed’s next meeting is June 13-14.

I'll believe that when we see two meetings in a row without rate increase.

My guess, that won't happen until the stock market starts tanking, because people losing their jobs and homes don't matter, but when the bonuses for Goldman Sachs start getting hit, they will be throwing money out of the windows.