)Fed Vice Chair Stanley Fischer gave a speech yesterday. He's a raging dove. He wants to see inflation before they hike. This is a new developing more dovish position. He expects economic stagnation for a long time to come. That may support asset values (IWM)(SPY) but it creates a growing underlying fundamental risk to the economy and markets over time.
Whites Of Their Eyes Inflation
Fed Chair Yellen said at her recent press conference,
"I'm not in favor of a "whites of their eyes" sort of approach. We need to operate based on forecasts."
She was saying that while they are waiting to see more inflation she implied they do not need to see 2% inflation itself before they raise rates.
The Fed Vice Chair Stanley though yesterday implied they are waiting for the "whites of their eyes."
"The central bank should raise the interest rate…