One Day at a Time, no not the sitcom staring Valerie Bertinelli that many of us grew up watching but the new drama that is now the FOMC where the flip side of their extraordinary accommodation, that of exit, becomes the main focus where they will be literally analyzing the process one day at a time. There is big focus today on whether the Fed will alter the wording on keeping the fed funds rate “substantially low” for an “extended period” but I think the Fed will keep that unchanged as they want to first wait to see the markets reaction to the end of QE by months end. If all signs are then clear, the Apr meeting will see a change in the wording I believe. German investor confidence fell but was 1 pt above estimates and EU officials made progress on Greek bailout plans. China stocks rose off its 4 1/2 week low and commodity prices are following. Their action is the missing link in the run to Jan highs.

Category: MacroNotes, Uncategorized

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “One Day at a Time”

  1. call me ahab says:

    the Fed-

    the same folks who said there is no housing bubble and that subprime was contained-

    and now everyone is pinning their hopes on their supposed knowledge, finesse and expertise to skillfully save the day-

    and you would think people would know better by now. And yes, the Fed is unlikely to change its ZIRP wording-

    but who cares really- it’s just short term nonsense

  2. globaleyes says:

    Here’s my viewpoint:

    Capital (money) is the world’s second largest shortage item (oil is the first).

    Consequently, interest rates should be much higher to reflect this.

    However, I do not make policy at The Federal Reserve.

  3. Mr.E. says:

    At this point what can the Fed rationally say, from a monetary policy perspective, that should encourage markets?

  4. constantnormal says:

    The Feral Reserve is committed to ZIRP, and will not move from that commitment until forced to by “circumstance” — “circumstance” likely being the crumbling of the USD, which ain’t gonna begin until there is an alternative major currency that appears more stable.

    Wake me up when the euro’s troubles are behind them (if ever). We are a long, LONG way from going cold turkey on our ZIRP addiction.