Posts filed under “Federal Reserve”

Why Do So Many People Hate QE?

 

Farewell QE, you have been a magnificent success:

The moral contours of QE depend on your angle of vision. But would you rather be surrounded by mass unemployment?

-Ambrose Evans-Pritchard, the Telegraph, Dec. 18.

 

Outgoing Federal Reserve Chairman Ben Bernanke managed to thread the needle yesterday, announcing a modest monthly taper in quantitative easing of “only” $10 billion dollars, while leaving the remaining $75 billion in monthly bond purchases untouched. He also suggested the Fed will keep rates accommodative — read very low — for even longer than previously promised.

Rather than crash (as was so widely predicted), the markets took off: The Dow industrials up 1.84 percent (292.71 points), while the S&P 500 gained 1.66 percent.

While we do live in interesting, even fascinating times, these many disparities raise this interesting question: Why do so many people hate QE?

Here are the six best answers to that question I can muster . . .

 

Continues here

Category: Federal Reserve

Source: Federal Reserve Bank of Chicago

Category: Digital Media, Federal Reserve, Think Tank

Jim Bianco on Taper, Potential for Early Yellen Elevation


Category: Federal Reserve, Video

When Might the Federal Funds Rate Lift Off?

Category: Federal Reserve, Fixed Income/Interest Rates, Think Tank

BBC: Inside the US Federal Reserve

No, that is not what DONT FIGHT THE FED means

 


Source: BBC

 

Category: Federal Reserve, Video

When Might the Federal Funds Rate Lift Off?

When Might the Federal Funds Rate Lift Off? Computing the Probabilities of Crossing Unemployment and Inflation Thresholds (and Floors) Edward S. Knotek II and Saeed Zaman       The Federal Open Market Committee has been providing guidance to help markets anticipate when it will begin raising the federal funds rate target. The most recent…Read More

Category: Bailouts, Federal Reserve

Sarkar: Monthly report – November

The US October non farm payroll (NFP) report came in much stronger than expected at  +204k jobs, rather than the +120k expected, with August and September revised higher. Furthermore, subsequent weekly unemployment data confirms that the US employment situation is improving. US Q3 GDP was better than expected, at +2.8% on an annualised basis, higher…Read More

Category: Economy, Federal Reserve, Think Tank

Has the Fed Stabilized the Price Level?

Has the Fed Stabilized the Price Level? Marc P. Giannoni and Hannah Herman Liberty Street Economics, November 27, 2013     The Federal Reserve Reform Act of 1977 established the monetary policy objectives of maximum employment, stable prices, and moderate long-term interest rates. The goal of “stable prices” has long been understood to mean a…Read More

Category: Bailouts, Federal Reserve, Think Tank

Shadow Banking and Systemic Risk Regulation

Shadow Banking and Systemic Risk Regulation Governor Daniel K. Tarullo November 22, 2013     As illustrated, quite literally, by a chart that New York Fed staff produced a few years ago, the term “shadow banking system” encompasses a wide variety of institutions that engage in credit intermediation and maturity transformation outside the insured depository…Read More

Category: Federal Reserve, Think Tank

Fed Dove-Hawk Scale

Fed dove-hawk scale Source: Easan Katir

Category: Digital Media, Federal Reserve