Fed Ends Quantitative Easing?

[georgephillip]

"THE FEDERAL Reserve’s unconventional 'quantitative easing' strategy will not turn into a “QE-ternity” after all. Many a Wall Street wag had suggested that might happen after then-Fed Chairman Ben S. Bernanke announced an indefinite program of $40 billion per month in asset purchases in September 2012.

"But on Wednesday the Fed released minutes of its internal discussions showing that the central bank, under new chair Janet L. Yellen, plans to stop quantitative easing in October.

"The conclusion of the Fed’s bond-buying, which had increased its balance sheet to $4.4 trillion from $900 billion before the financial crisis, is good news in two ways. It is a sign that the Fed believes growth and job creation have finally achieved enough momentum to continue without the stimulus that comes from adding to the Fed’s balance sheet — while the stimulus of near-zero interest rates and the expanded balance sheet remain in place."

What happens now?

The end of quantitative easing is good news - The Washington Post

 

[HenryBHough]

Not much left to October.

But if the fed takes away the sugar-tit then it could well be the October Surprise that gives Republicans a near veto-proof majority in Congress.

 

[saveliberty]

Note they aren't selling any of that $4.4T just yet.

 

[Moonglow]

Last Dec they eased with a 10 billion.....reduction

The banks now have the reserves to become aggressive on lending.. I just had a loan for my land to consolidate and got a loan for a new house.. Just 4 years ago they denied the loans..

Now is the time to start business......

 

[georgephillip]

Last Dec they eased with a 10 billion.....reduction

The banks now have the reserves to become aggressive on lending.. I just had a loan for my land to consolidate and got a loan for a new house.. Just 4 years ago they denied the loans..

Now is the time to start business......

"An irony of this situation is that the Fed is reaping what it sowed.

"One goal of quantitative easing was precisely to create a rally in asset prices at a time when a panicked market was unduly risk averse.

"The 'wealth effect' also made consumers more eager to spend.

"All the more reason to praise the Fed’s latest action, which shows that the central bank is aware of its responsibilities to counter speculative bubbles before they get too big — if it can. Financial markets are now on notice that near-zero interest rates won’t necessarily last forever either."

Do you think you're being set up?

The end of quantitative easing is good news - The Washington Post

 

[georgephillip]

Not much left to October.

But if the fed takes away the sugar-tit then it could well be the October Surprise that gives Republicans a near veto-proof majority in Congress.

What do you think they'll do with it?

 

[Toddsterpatriot]

Last Dec they eased with a 10 billion.....reduction

The banks now have the reserves to become aggressive on lending.. I just had a loan for my land to consolidate and got a loan for a new house.. Just 4 years ago they denied the loans..

Now is the time to start business......

The banks now have the reserves to become aggressive on lending..

They need more capital, they've had enough reserves for a while.

 

[georgephillip]

Last Dec they eased with a 10 billion.....reduction

The banks now have the reserves to become aggressive on lending.. I just had a loan for my land to consolidate and got a loan for a new house.. Just 4 years ago they denied the loans..

Now is the time to start business......

The banks now have the reserves to become aggressive on lending..

They need more capital, they've had enough reserves for a while.

Do they need more "froth?"
"The conclusion of the Fed’s bond-buying, which had increased its balance sheet to $4.4 trillion from $900 billion before the financial crisis, is good news in two ways.

"It is a sign that the Fed believes growth and job creation have finally achieved enough momentum to continue without the stimulus that comes from adding to the Fed’s balance sheet — while the stimulus of near-zero interest rates and the expanded balance sheet remain in place.

"And it is a much-needed recognition that easy monetary policy may be breeding asset bubbles not unlike those that contributed to the crash."
'Noticed any asset bubbles lately?
The end of quantitative easing is good news - The Washington Post

 

[Toddsterpatriot]

Last Dec they eased with a 10 billion.....reduction

The banks now have the reserves to become aggressive on lending.. I just had a loan for my land to consolidate and got a loan for a new house.. Just 4 years ago they denied the loans..

Now is the time to start business......

The banks now have the reserves to become aggressive on lending..

They need more capital, they've had enough reserves for a while.

Do they need more "froth?"
"The conclusion of the Fed’s bond-buying, which had increased its balance sheet to $4.4 trillion from $900 billion before the financial crisis, is good news in two ways.

"It is a sign that the Fed believes growth and job creation have finally achieved enough momentum to continue without the stimulus that comes from adding to the Fed’s balance sheet — while the stimulus of near-zero interest rates and the expanded balance sheet remain in place.

"And it is a much-needed recognition that easy monetary policy may be breeding asset bubbles not unlike those that contributed to the crash."
'Noticed any asset bubbles lately?
The end of quantitative easing is good news - The Washington Post

What froth? Where?

 

[SteadyMercury]

"The 'wealth effect' also made consumers more eager to spend.

The consumers do seem optimistic....

U.S. consumer sentiment rises despite Ebola fears Reuters

While the appearance of the deadly Ebola virus in Texas is worrying the nation, it has yet to lead Americans to take a more cautious view over how to spend their money, data suggested on Friday.

The Thomson Reuters/University of Michigan index of consumer sentiment unexpectedly rose in early October to its highest level since July 2007.

Separate data showed groundbreaking for new homes rose more than expected last month, and taken together the reports pointed to solid U.S. economic growth.

 

[georgephillip]

Last Dec they eased with a 10 billion.....reduction

The banks now have the reserves to become aggressive on lending.. I just had a loan for my land to consolidate and got a loan for a new house.. Just 4 years ago they denied the loans..

Now is the time to start business......

The banks now have the reserves to become aggressive on lending..

They need more capital, they've had enough reserves for a while.

Do they need more "froth?"
"The conclusion of the Fed’s bond-buying, which had increased its balance sheet to $4.4 trillion from $900 billion before the financial crisis, is good news in two ways.

"It is a sign that the Fed believes growth and job creation have finally achieved enough momentum to continue without the stimulus that comes from adding to the Fed’s balance sheet — while the stimulus of near-zero interest rates and the expanded balance sheet remain in place.

"And it is a much-needed recognition that easy monetary policy may be breeding asset bubbles not unlike those that contributed to the crash."
'Noticed any asset bubbles lately?
The end of quantitative easing is good news - The Washington Post

What froth? Where?

"Signs of possibly dangerous froth in the markets have multiplied in recent weeks, from unusually low yields on risky corporate junk bonds to soaring luxury real estate prices to record highs for the New York stock market indexes.

"As the Fed’s minutes put it: 'Low implied volatility in equity, currency and fixed-income markets as well as signs of increased risk-taking were viewed as an indication that market participants were not factoring in sufficient uncertainty about the path of the economy and monetary policy.'

"Translation: Investors’ 'search for yield,' spurred by the Fed’s own prolonged low-interest rate policy, may have become so frenzied that they are paying asset prices that no longer convey accurate information about the economic costs and benefits of various investments."
The end of quantitative easing is good news - The Washington Post

 

[EdwardBaiamonte]

the Fed’s own prolonged low-interest rate policy, may have become so frenzied

yes liberal regulation of the economy is always a dangerous thing.

 

[EdwardBaiamonte]

asset prices that no longer convey accurate information

yes when liberal soviet govt set wages and prices rather than the free market setting them you run huge risks. A liberal though cant possible understand that.

 

[georgephillip]

the Fed’s own prolonged low-interest rate policy, may have become so frenzied

yes liberal regulation of the economy is always a dangerous thing.

How does an economy exist without democratic regulation?

 

[georgephillip]

asset prices that no longer convey accurate information

yes when liberal soviet govt set wages and prices rather than the free market setting them you run huge risks. A liberal though cant possible understand that.

And do you see the Federal Reserve as part of the "free market" or liberal soviets?
"At the conclusion of the discussion, the Committee voted to authorize and direct the Federal Reserve Bank of New York, until it was instructed otherwise, to execute transactions in the SOMA in accordance with the following domestic policy directive..."
FRB FOMC Minutes - June 17-18 2014

 

[EdwardBaiamonte]

And do you see the Federal Reserve as part of the "free market" or liberal soviets?

dear, many conservatives want a free market gold standard to control monetary policy. Do you understand?

A cut and paste about the gold standard will only show you lack the IQ to think yourself or to learn. Have you no shame?

 

[georgephillip]

And do you see the Federal Reserve as part of the "free market" or liberal soviets?

dear, many conservatives want a free market gold standard to control monetary policy. Do you understand?

A cut and paste about the gold standard will only show you lack the IQ to think yourself or to learn. Have you no shame?

So you believe in the Golden Rule?

 

[EdwardBaiamonte]

And do you see the Federal Reserve as part of the "free market" or liberal soviets?

dear, many conservatives want a free market gold standard to control monetary policy. Do you understand?

A cut and paste about the gold standard will only show you lack the IQ to think yourself or to learn. Have you no shame?

So you believe in the Golden Rule?

what??

 

[georgephillip]

And do you see the Federal Reserve as part of the "free market" or liberal soviets?

dear, many conservatives want a free market gold standard to control monetary policy. Do you understand?

A cut and paste about the gold standard will only show you lack the IQ to think yourself or to learn. Have you no shame?

So you believe in the Golden Rule?

what??

Those who own the gold write (and enforce) the rules.

 

[EdwardBaiamonte]

And do you see the Federal Reserve as part of the "free market" or liberal soviets?

dear, many conservatives want a free market gold standard to control monetary policy. Do you understand?

A cut and paste about the gold standard will only show you lack the IQ to think yourself or to learn. Have you no shame?

So you believe in the Golden Rule?

what??

Those who own the gold write (and enforce) the rules.

worthless communist idiot