From Goldman Sachs CEO Llyod Blankfein, when asked at an interview with The Wall Street Journal if the Federal Reserve should raise its federal funds target rate by twenty-five basis points today.
I wouldn’t do it.
The Wall Street Journal, “Wall Street Has Doubts About Fed Lifting Rates,” 9/17/15
The Fed did not raise the rate today. Back on June 21, SLL said they wouldn’t; not because SLL has any special connections inside the Fed or insight into its decision-making process, but simply because Goldman Sachs said they wouldn’t.
There is no more connected institution than Goldman Sachs, supplying both Bill Clinton and George W. Bush with Secretaries of the Treasury (Robert Rubin and Henry Paulson) and regularly landing on Top 10 lists of campaign donors for candidates of both parties. The heads of the European Central Bank and the Bank of England are Goldman alumni. If Goldman says a rate hike won’t happen in September, it won’t happen.
“Goodfellas and Goodgals,” SLL, 6/21/15
Yesterday, SLL reiterated its prediction.
Goldman Sachs is far more plugged into the Fed than SLL. They have said for some time that the Fed won’t raise the rate and SLL will go with that. Our lack of insight about the imminent move is exceeded only by our disinterest.
“Who Cares?” SLL, 9/16/15
Goldman Sachs is an amoral amalgamation of soulless whores and the Fed is a wholly captured subsidiary of it and the other big money center banks. For all the pundits who were citing this and that economic factor as reasons why the Fed would or would not lift the rate, this offers an abject lesson in what, and who, really drives monetary policy.