Tips From CNBC's Kudlow to the Fed: 'Stop Yapping'
NEW YORK (TheStreet) -- Federal Reserve members made new statements on the interest rate debacle after the Bank of England decided to leave its rates unchanged today following the Brexit, a shock to markets expecting a 0.25% cut, CNBC's Steve Liesman reported on "Closing Bell" Thursday.
"The general impression remains a Fed not hurdling toward any rate increase, kind of 'chillaxing' this summer," Liesman commented.
Fed member Dennis Lockhart is reportedly in favor of a "cautious, patient approach" to rate increases. Fellow member Neel Kashkari agreed to being "patient" with increasing rates, according to Liesman.
Meanwhile, Fed member Esther George suggested that the current rate level is "too low" for the current economy, but she will be watching the low yield on the 10-year Treasury note and the potential Brexit effects on U.S. growth, he continued.
"Most importantly you've got all the Fed speak on this side (and) you also have the retail sales (coming) out at 8:30 a.m. tomorrow. Everyone from the Fed and the Street want to know if the consumer will remain strong," Liesman noted.
"The Fed people should stop yapping. All they do is confuse folks. They themselves change their minds on a dime, I can't stand it," CNBC's contributor Larry Kudlow argued.
However, "larger than that," the Fed should also "stop regulating interest rates" because "only the market knows where the rates should be," Kudlow stated.
In addition, the Fed should halt its practice of paying banks to not loan money, he continued.
"Paying interest on excess reserves is a crazy idea," Kudlow said.
Finally, the Fed must "have steady rules and targets. We should have a stable dollar and stable prices" and "there are too many Ph.D.s. What I want? I want to see men and women who work in business, particularly small business, community bankers, people from agriculture, people from energy, people from tech," Kudlow fired.