Get me out of my misery: just “pull the trigger”!

JACKSON HOLE, Wyo.—After months of forewarning by Federal Reserve officials that they are preparing to raise short-term interest rates, some international officials attending the Fed’s annual retreat here this week have a message: Get on with it already.

“If you delay something that you were planning to do, then you leave the impression that your compass is different than what you led markets to believe,” Jacob Frenkel, chairman of J.P. Morgan Chase International and former head of the Bank of Israel, said in an interview Thursday. Market drama is increased by delay, he added.

Interestingly, in 2013, when Jacob Frenkel was appointed to replace Stanley Fischer as head of the Bank of Israel (although that didn´t pan out), he said:

At the conference, Frenkel had an enlightening conversation with Axel Weber, today the chairman of the Swiss banking group UBS and formerly the leader of Deutsche Bundesbank, the German central bank.

“We were both formerly central bankers and I personally can say I wouldn’t want to be a central banker today, with interest rates at rock bottom, because there’s almost nothing that can be done,” Frenkel observed. Every central banker knows that keeping interest rates that low isn’t sustainable, he added: “That doesn’t mean it’s a bad policy, but that’s not a place anybody would want to be.”

One thought on “Get me out of my misery: just “pull the trigger”!

  1. That Jon Hilsenrath who wrote that WSJ news report is well known in the market as a mere conduit for the views of the Fed Borg. He has none himself, like all the best journos.

    It’s not the views of the people he quotes that are important in any way, the Fed spin doctors would have steered him to them. So it is (expectedly) worrying that the Borg continues trying to pressure the FOMC.

    The Borg is like our famous British civil servants who remain permanently running things as our elected politicians come and go.

    The Borg is just an ever growing bunch of bureaucrats, not thinkers, hence the insane unscientific nonsense about “normalization”. And why the Borg so fears NGDP Forecast targeting as it would put them out of jobs. Turkeys never vote for Christmas.

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