Fed will be moving to remove cash from Economy

[JimH52]

Bernanke's trillion-dollar decision - Yahoo! News

So, Obama's political future could be out of his control. The 2010 mid-terms and the 2012 re-election bid will certainly depend on the state of the economy. Interesting

 

[Toro]

It is unlikely the Fed will start removing reserves from the economy until there are signs the economy is beginning to substantially recover. Some reserves will removed as swaps with central banks expire but the Fed does not wish to trigger another leg down in the economy.

 

[JimH52]

There are signs of recovery with housing sales up and the market surge If there is any sign of inflationary pressure, the Fed will move.

 

[Mad Scientist]

Bernanke's trillion-dollar decision - Yahoo! News

So, Obama's political future could be out of his control. The 2010 mid-terms and the 2012 re-election bid will certainly depend on the state of the economy. Interesting

The Fed is a privately run institution. The money supply is out of everyones hands except those at the Federal Reserve Bank.

 

[Neubarth]

There are signs of recovery with housing sales up and the market surge If there is any sign of inflationary pressure, the Fed will move.

Housing sales are not REALLY up. Auction sales of foreclosed properties are up. Take the auction sales away, and housing sales are DOWN. The Market Surge is not a sign of recovery. It is a sign of stupidity.

 

[Oddball]

For the Fed to take cash out of the stream, they would first have to stop monetizing the debt....Which they haven't.

Looks like a big week for hoaxes.

 

[Paulie]

Bernanke's trillion-dollar decision - Yahoo! News

So, Obama's political future could be out of his control. The 2010 mid-terms and the 2012 re-election bid will certainly depend on the state of the economy. Interesting

The Fed is a privately run institution. The money supply is out of everyones hands except those at the Federal Reserve Bank.

But don't pretend the Fed's moves aren't politically motivated though.

Anyway, is there any kind of plausible information for the OP's claim? A link?

Because last word from the FOMC was that rates were staying at this level for quite some time.

Don't get my hopes up without some kind of proof

Nevermind, missed the link.

It says 6 months out from now. That's what the Fed has already said. You're BEYOND fashionably late on this my man.

Let's hope 6 months from now isn't already too late. If they extend that $8k first time home buyer credit and it coincides with job adds, the fed needs to start raising rates IMMEDIATELY.

If those reserves start hitting the streets in force, we're so fucked.

Bernanke's "exit strategy" is "pray".

 

[The Rabbi]

I strongly suspect the Fed will respond the world criticism of the overhang on dollars and begin tightening. They will raise rates as the last step. They have already begun to eliminate programs they previously had.
If so, gold is in for nose dive.

 

[Paulie]

They have already begun to eliminate programs they previously had.

Name ONE they "eliminated". Not one that expired, but one they actually ELIMINATED.

You're confusing eliminated, which would be a move they intentionally made, with expiry of a facility/program.

Why the fuck are you still posting in the econ forum??

 

[Paulie]

Most of the facilities they currently utililze expire on 31 December, and some have been extended until February.

Just another reason you put me on ignore, you pussy. Because I make you look like a damn idiot around here. You know it, I know it, and several others here know it as well.

 

[Oddball]

I strongly suspect the Fed will respond the world criticism of the overhang on dollars and begin tightening. They will raise rates as the last step. They have already begun to eliminate programs they previously had.
If so, gold is in for nose dive.

You gonna answer the question?

Which programs did the Fed eliminate?

Hint: Allowing to expire doesn't count.

 

[Paulie]

I strongly suspect the Fed will respond the world criticism of the overhang on dollars and begin tightening. They will raise rates as the last step. They have already begun to eliminate programs they previously had.
If so, gold is in for nose dive.

You gonna answer the question?

Which programs did the Fed eliminate?

Hint: Allowing to expire doesn't count.

Like I said, he can't see my posts. He put me on ignore because I've schooled him way too much and he's embarrassed to read my posts any further.

It's ok though, the REST of the board knows he's a moron.

And I'm not even sure any facilities have even EXPIRED yet. Most expire on 31 December, and others are extended until February.

 

[The Rabbi]

Fed Starts Rollback Of Rescue Efforts - washingtonpost.com

 

[Paulie]

LOL, yeah, that article CLEARLY states they're "eliminating" programs.

They're merely cutting back on amounts.

Here's the part that kills your own point right here:

Rather, the central bank is in a period of carefully monitoring the incipient recovery and winding down programs only reluctantly, lest they prevent the recovery from taking hold.

"The Fed will be in wait-and-see mode for some time," said Paul Ashworth, senior U.S. economist at Capital Economics. "They want to see how the recovery begins to develop before they move on an exit strategy."

"eliminating".

What a fucking dumb ass you are.

 

[Toro]

There are signs of recovery with housing sales up and the market surge If there is any sign of inflationary pressure, the Fed will move.

Housing sales have probably bottomed, but 600k units is a far cry from the long-term average of 1.4 million, and the 2 million we saw at the top of the bubble.

Eventually, when there are signs of price inflation, they will act. However, prices are still falling so price inflation won't be coming any time soon.

 

[The Rabbi]

Hard to know what will happen on inflation. I think if the velocity of money picks up we will see a lot more inflation than anyone thought. The Fed has a poor record of raising rates when they need to. Maybe they will have learned something. But with a midterm elections a year away I don't see them raising until afterwards.

 

[Paulie]

I think if the velocity of money picks up we will see a lot more inflation than anyone thought.

We've got a genius on our hands here, folks!

 

[Oddball]

Fed Starts Rollback Of Rescue Efforts - washingtonpost.com

That story is tremendously non-specific.

If all you have is hearsay and surmise, I can understand.

 

[dilloduck]

Hard to know what will happen on inflation. I think if the velocity of money picks up we will see a lot more inflation than anyone thought. The Fed has a poor record of raising rates when they need to. Maybe they will have learned something. But with a midterm elections a year away I don't see them raising until afterwards.

i.e.---the Fed is political
shocker

 

[Neubarth]

I think if the velocity of money picks up we will see a lot more inflation than anyone thought.

We've got a genius on our hands here, folks!

I am absolutely convinced that if people spend more money, more money will be spent.