Wednesday, November 20, 2013

Here’s why the Fed is about to lose control of the bond market: Strategist | Talking Numbers - Yahoo Finance

Here’s why the Fed is about to lose control of the bond market: Strategist | Talking Numbers - Yahoo Finance

2 comments:

  1. Great news for green ink suppliers: The Fed might be buying up your inventory.

    In a speech to the National Economists Club, Federal Reserve Chairman Ben Bernanke said the Fed's easy-money policy will continue until "well after" the official unemployment rate falls below 6.5%. Translation: The Fed is going to keep throwing dollars into the economy for some time to come.

    Unemployment rate hasn't been below 6.5% in the past five year. After peaking at 10% in October 2009, it has fallen to its current level of 7.3%. The Fed's two mandates are to keep both inflation and unemployment low.

    However, the labor force participation rate – the percentage of those who can work with a job – has dropped from 66% in October 2008 to 62.8% last month. That's the lowest it's been since 1978.

    (Read: Some scary numbers in the jobs data)

    Over the past five years, the Federal Reserve Bank has been undertaking a bond-buying stimulus policy known as "quantitative easing" ("QE"). The Fed has thus far added $4 trillion to its balance sheet in the last half-decade.
    .../-

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  2. The Fed is going to keep throwing dollars into the economy for some time to come.

    Unemployment rate hasn't been below 6.5% in the past five year. After peaking at 10% in October 2009, it has fallen to its current level of 7.3%. The Fed's two mandates are to keep both inflation and unemployment low.
    WHAT;S NEXT ? ....or HOW low could it go ? ...... The CORRECT mixture for treatment on overdose ? ...intensive repair needed OBVIOUSLY ... YES ONE must decide on what to do next, .... intensive rehab ? YES Everything Plus Anything on The BOOK .... is BEAUTIFUL to the BEHOLDERS, UNIQUELY !

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