Fed's Hoenig Wants Feds Funds Rate Raised Soon

(If this is not a stock market manipulation by the Federal Reserve, I don't know what is...)

Kansas Fed President Thomas Hoenig, regular dissenting member of the Fed Open Market Committee (FOMC), said he would like to see the Feds fund rate raised "cautiously" to 1% soon.

He said it around 2:14 PM today, and this is what it did to the market. (It is a Dow 3-minute intraday chart.)

Oh BTW, the Treasury Department will be auctioning 30-year bond ($13 billion, 2nd reopening) tomorrow. I'm sure Treasury would like to see a lower rate (=higher price) for their offering. Flight from scary stock market to "safety" of US Treasuries.

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Can Fed Funds Rate Ever Rise from Zero?

If you look at the chart, it doesn't seem possible. You be the judge.

(The chart is from St. Louis Fed's FRED.)

Note how smooth the line has been since the dot-com bust. Unnaturally smooth.

(Now, if you do TA on this chart, you could say "Head and shoulders pattern, with neckline around 2.5. It's below the neckline but at the support at zero. The target would be the height of the head inverted, that would take it to around -20%. Hello high inflation.)

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