Will Fed Raise Rates Sooner Than Expected?

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Aug. 21 (Bloomberg) -- Marketfield Asset Management Chairman and CEO Michael Shaoul discusses Federal Reserve monetary policy on “Bloomberg Surveillance.” (Source: Bloomberg)

Hour is ceo of asset management.

Michael, your take on futures up on sooner than expected removal of fed sugar?

What you saw yesterday was beginnings of dissent.

I do not think the fed as a whole really came out and said for sure they would move quicker than expected, and in fact the first part of the minutes, they were talking what the needs to get the market tons and tons of warning before they go do anything, so it was a somewhat schizophrenic document.

What i thought was the most interesting thing is that main street, the main street contact that the federal reserve keeps, which is like the beige book and anecdotal comments in the minutes, main street and is signaling significant strength.

What about slack in the labor market?

That has been the issue for terry yellen.

-- four chair yellen.

We have cap utilization, which is fairly useless.

My concern, and i think you are beginning to see evidence even in the fed minutes, is that to the extent that slack in the u.s. economy is not very useful, it will be in the long part of the country, it is a large country, you have a large degree of available labor in one space and a large degree of demand in another space.

Very quickly, michael, what would be wrong if they raised interest rates just a little bit to get some discipline and here?

What would happen?

I think the bond market would have a hissy fit.

I cannot think of a single sensible decision that would be derailed by the fed raising basis points.

They created the problem himself.

This is a massive theme here.

When do you move?

Wife i am interested in hearing what qualifies as a hissy fit.

If the equity market had age rock and then you find the corporate earnings are ok.

I do not think the fed can micromanage the equity market.

The short and end of the curve is mathematically tied to where the fed is.

I am not sure what you can do about that.

Very good.

And hissy fit, i went to the bloomberg terminal, and the

This text has been automatically generated. It may not be 100% accurate.

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