"We are thus to understand that President Obama, having searched the entire length and breadth of our land, could find nobody better than a 70 year old with Wall St. and International Monetary Fund baggage who had most recently worked for a foreign government."Funny.
Fed to keep rates low even after economy recovers, which it never will.
"But what stood out in the central bank's statement was its embrace of easy money policies even after the Fed achieves its goals of full employment and 2 percent inflation."It will never reach those goals if it keeps printing money.
"U.S. stock prices fell after the statement was released, while yields on U.S. government debt rose."Usually when the Fed promises to keep rates low, stocks rise.
"The central bank also proceeded with its well-telegraphed reductions to its massive bond-buying stimulus, announcing it would cut its monthly purchases of U.S. Treasuries and mortgage-backed securities to $55 billion from $65 billion."That explains it. I wonder if it added $10 billion of something else like mortgage-backed securities.
"The decision to continue to scale back its stimulus keeps the Fed on track for the measured wind down laid out by Yellen's predecessor, Ben Bernanke. The Fed repeated that it plans to continue trimming the asset purchases in "measured steps" as long as labor conditions continue to improve and inflation shows signs of rising back toward the Fed's 2-percent goal."It looks like no. It may have cut purchases back to $65 billion. This seems like a mixed message. That would also explain the stock and Treasury moves.
"The Fed has kept overnight rates near zero since December 2008 and has bought more than $3 trillion in long-term debt to keep borrowing costs down and spur investment and hiring."And yet, or because of this, the economy stinks.
Fed tapers another $10 billion.
No comments:
Post a Comment