- Nov 26, 2011
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To aid Obama in his horrific handling of the economy, the Fed is launching QE3 in an attempt to give him a pre-election boost.
It won't work, though. The Fed is firing blanks. They can no longer do anything to provide an economic climate which fosters growth. That's all on Congress and the President, and they all get an F-.
Fed Announces New Round of Bond Buying to Spur Growth
It's those "other new policies" you really need to watch out for. Perhaps the buying of corporate bonds?
Bernanke is setting all kinds of precedents which will bite us in the ass in the long run.
Plan for an October surprise.
Mid-2015. Jesus H. Christ.
Very few people agree.
The Fed press release is here: FRB: Press Release--Federal Reserve issues FOMC statement--September 13, 2012
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It won't work, though. The Fed is firing blanks. They can no longer do anything to provide an economic climate which fosters growth. That's all on Congress and the President, and they all get an F-.
Fed Announces New Round of Bond Buying to Spur Growth
The Federal Reserve opened a new chapter Thursday in its efforts to accelerate the economic recovery, saying that it would expand its holdings of mortgage-backed securities, and potentially undertake other new policies, until unemployment drops sufficiently or inflation rises too fast.
It's those "other new policies" you really need to watch out for. Perhaps the buying of corporate bonds?
Bernanke is setting all kinds of precedents which will bite us in the ass in the long run.
The Fed said that it would add $23 billion of mortgage bonds to its portfolio by the end of September and then announce its plans for October as part of a new process that aims to prioritize the Fed’s economic objectives.
Plan for an October surprise.
The Fed also said, in a statement following a meeting of its policy-making committee, that it now expects to hold short-term interest rates near zero until at least mid-2015, extending the forecast it made in January by about half a year.
Mid-2015. Jesus H. Christ.
The language was intended to make clear that this latest intensification does not solely reflect the Fed’s increased concern about the economy, but also reflects an increased determination to make a more forceful response. It suggests that the Fed is willing to tolerate somewhat higher inflation later to encourage stronger recovery in the coming months, something it once insisted was unthinkable but has gradually come to consider a necessity in order to revive the economy.
Mr. Bernanke has presided over a gradual intensification of the central bank’s stimulus campaign, but the central bank has repeatedly underestimated the depth of the nation’s economic problems, and the unemployment rate has remained stubbornly high.
Mr. Bernanke said last month in Jackson Hole, Wyo., that he was confident such a program would stimulate the economy. Significantly, he also said that he had concluded the likely benefits of such a program would outweigh the potential costs.
Very few people agree.
Investors may still view such promises with skepticism however, because Mr. Bernanke’s term as Fed chairman ends in January 2014.
The Fed press release is here: FRB: Press Release--Federal Reserve issues FOMC statement--September 13, 2012
To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee agreed today to increase policy accommodation by purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will continue through the end of the year its program to extend the average maturity of its holdings of securities as announced in June, and it is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. These actions, which together will increase the Committee’s holdings of longer-term securities by about $85 billion each month through the end of the year, should put downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative.
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