Reserve Bank of Australia head, Glenn Stevens, was making comments today that implied rhetorically that he might be done raising interest rates. Aussi stocks acted great, in reaction to his subtle shift.
The Aussi's, unlike our fire engine chasing Fed here in the US, have nailed the economic call this year. They've already raised rates to 12 year highs at 7.25% in order to proactively fight what they objectively observed as an inflation tempest coming, and they did not pander to political populism.
Interestingly, Stevens agrees with me on the his growth outlook, and is hinting that he is done raising rates as a result of the oncoming growth slowdown.
Meanwhile the latest Fed lackey, Richmond's President Lacker, is talking about "downside risks to the US economy diminishing."??
The only thing diminishing is the US Federal Reserve's credibility in being able to proactively forecast anything other than what Washington and Wall Street are going to beg for next.
*Full Disclosure: I am long Australia via the EWA etf.
KM
(picture: http://www.abc.net.au/news/photos/2008/04/04/2208219.htm)
The Aussi's, unlike our fire engine chasing Fed here in the US, have nailed the economic call this year. They've already raised rates to 12 year highs at 7.25% in order to proactively fight what they objectively observed as an inflation tempest coming, and they did not pander to political populism.
Interestingly, Stevens agrees with me on the his growth outlook, and is hinting that he is done raising rates as a result of the oncoming growth slowdown.
Meanwhile the latest Fed lackey, Richmond's President Lacker, is talking about "downside risks to the US economy diminishing."??
The only thing diminishing is the US Federal Reserve's credibility in being able to proactively forecast anything other than what Washington and Wall Street are going to beg for next.
*Full Disclosure: I am long Australia via the EWA etf.
KM
(picture: http://www.abc.net.au/news/photos/2008/04/04/2208219.htm)
