US Federal Reserve

One week ago, we pointed out a curious bifurcation: the Fed was telegraphing an imminent rate hike - one which following Yellen's Friday conference is now virtually assured - even though it appears the FOMC would be hiking in a quarter in which GDP comes in in the mid 1%-range, or lower. The reason: while "soft data" - which is important to animal spirits if not actual economic output - continues to surge, the "hard data", that which actually matters to the economy, is still disappointing.

Via Charles Hugh-Smith of OfTwoMinds blog,

Unless the Federal Reserve intends to buy up every dead and dying mall in America, this is one crisis that the Fed can't bail out with a few digital keystrokes.

Just as generals prepare to fight the last war, central banks prepare to battle the last financial crisis--which in the present context means a big-bank liquidity meltdown like the one that nearly toppled thr global financial system in 2008-09.

Via Brendan Brown of The Mises Institute,

Yellen, like notorious previous Fed chiefs including Strong, Martin, and Greenspan, can now claim success in having prolonged and strengthened an asset price inflation which otherwise may well have been about to enter its severe end phase. If history is any guide, the result of that success is to be feared.

Via Ron Paul of The Ron Paul Institute for Peace & Prosperity,

History shows that, if individuals have the freedom to choose what to use as money, they will likely opt for gold or silver.

Of course, modern politicians and their Keynesian enablers despise the gold or silver standard. This is because linking a currency to a precious metal limits the ability of central banks to finance the growth of the welfare-warfare state via the inflation tax. This forces politicians to finance big government much more with direct means of taxation.

Bloomberg FX strategist, Vincent Cignarella, explains why for dollar bulls betting on a continued rise in the dollar, the lack of a strong move higher following last week's repricing of March rate hike odds may be an ominous development.

Dollar Bulls Despair as March Fed Hike Looks Like It's Baked In

Federal Reserve Chair Janet Yellen’s remarks Friday all but confirmed what traders rushed to price in last week: a rate hike mid-month is close to a lock.