James Hall – Now that the big bluff from the Federal Reserve that interest rates were poised to start their eventual rise has been played, when will the trigger actually be pulled? Assumptions that the Fed act as custodians of the national trust to balance and maintain the economic stability has been proven wrong time and again. Just how well has their efforts translated into the real economy of business activities that reflects positively for the average American? Obviously, if you are not a hedge fund speculator, your response will be guarded at best.

The International Business Times asks, As The Federal Reserve Holds Interest Rates, What Did We Learn About The Economy? “Observers took particular note of the Fed’s mention of “global economic and financial developments” in its highly scrutinized press release, a shift from previous statements.”

Federal Reserve trackers are eager to present their forecasts and parsing of future intents. One such interpretation comes from the Washington Post, The biggest economic decision of the year, explained.

“Yellen believes that the Fed can play an important role in helping the economy return to normal. She is a staunch supporter of the massive stimulus the Fed unleashed under Bernanke to help the country avoid another Great Depression. She is less worried about prices spiraling out of control and more worried about the number of people who are unemployed or underemployed. In the wonky world of Fed watchers, that makes her a “dove” — as opposed to a hawk who is more worried about inflation.

Yellen gave a speech in San Francisco in March in which she gave what at first seems to be a clear-cut statement: “With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year.” Continue reading →