Fed’s Yellen keeps rates unchanged: what is behind – Lettera43

 He chose not to choose Janet Yellen.

 The chairman of the Federal Reverse (Fed), the US central bank, has kept interest rates between 0 and 0.25% despite its she had announced that – with the recovery and the creation of new jobs – the accommodative policy would be exceeded.
BALANCE GLOBAL. If you will get back perhaps as early as the October meeting. “Yes, there remains a possibility”, was the confirmation of the direct question.

 Behind the decision is the “concern over developments in the global economy.”

 Yellen said she was aware that “the strong growth fears in China and other emerging countries have created volatility in the financial markets.”
like its predecessors. The # 1 of Fed It has moved in line with its predecessors Greenspan and Bernanke.

 Who have preferred to look at the stability of the real economy (often drugged by printing dollars) than to that of core inflation as.

 Front on which the central bank has failed the expectations, given that for at least 20 months has been unable to secure the cost of living around 2.5%.
NO EQUAL EURO-DOLLAR. L ‘Europe – as evidenced by the slowdown in the major European markets in the last hour – he was hoping for a move contrary: an increase in rates would have definitely led to parity between euro and dollar.

 But this does not suit America strengthen the dollar more than what happened, as analysts of the largest banks have calculated that, after the Quantitative easing (Qe) Mario Draghi and impairment of the yuan, the greenback was overvalued by at least 7 % compared to its fundamentals.

 And not only because an increase of 3.7% is still struggling to dispose of all the waste crisis.

 A helping Obama administration

 In the end, and only for a chance in full agreement with the White House, the Fed preferred to consider other aspects.

 Meanwhile, there is China that with an increase in interest rates and higher inflation could be brought to yield with more speed the TBond in its possession, even now less and less attractive.

 The price of raw materials, despite the crisis in commodities, makes it difficult steel imports from Brazil, Australia or iron coffee from Brazil.

 All markets that US corporations have to bear.
BUBBLE RISK FROM 6.8 BILLION. And then there’s a bubble in perspective by the biblical proportions: one composed of 6.8 billion debt corporate burden on companies of emerging.

 A rate increase would bring only an escape markets.

 The Fed chooses not to choose, and greatly helps the Obama presidency, which is to steer the country to elections in an atmosphere burdened by the foreign policy of the White House, that between openness to Russia in key Syrian or after the deal with Iran is displacing not only the Americans.
CLASH-BANKERS POLICY. But Janet Yellen is the first to know that, not being able to decide, ends only to sharpen the contrast with the policy in just over a year from the presidential election.

 The Republicans wanted to overcome the monetary accommodation

 The decision not to revise the rates is destined to end targeted by the Republicans, who have put at the center of their plans to end the immense discretion of central bankers.

 The GOP, for months, asking not only to overcome the accommodative monetary policy.

 MPs want to introduce more controls, cut the budget of the institution (still too large despite the end of the Q and Bernanke), reduce the scope of its too extensive powers of supervision and financial regulation.
Why delay? Not satisfied, the Republican front asks to tie monetary policy moves the adoption of mathematical formulas, where the benchmark is the rate of inflation as the level of employment.

 Because with an unemployment rate of 5.3% and 13 million new jobs created in five years we do not understand why we should postpone anchors the exit strategy from a policy accommodative.
TOO MANY INEQUALITIES . Critics, though with less caustic tones, even Democrats.

 Who they have every incentive to claim the race for the White House economic stability, but they see the Fed’s monetary policy as an incentive to exacerbate economic inequalities in the country.

 There is the idea that keep down the cost of borrowing Agree only to those who hold large money supply can be used to secure new loans and accumulate more wealth.
THANK THE BANKS. Not to mention the boom in consumer credit, rose more than 40% last month and that it contains within itself the specter of a country that lives on its debts and s’indebita unmindful that a new financial crisis is around the corner .

 Meanwhile banks thanks, securing big gains.

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