Categories

Economy & Politics

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    More Stonewalling From Eric Holder To Conceal Fast And Furious Papers
    How To Save America And Create 20 Million Jobs Instantly
    Scottish Independence: Politicians Love Democracy So Much They’re Trying To Subvert It
    The Fed’s Laughable GDP ‘Forecast’ Just Got Even Funnier
    The REAL Reason Britain Is Freaking Out About Scottish Independence
    Top U.S. Military Official: Our Arab “Allies” Support ISIS
    ISIS Releases New Video, Warns “Fighting Has Just Begun”
    Wall Street Responds To China’s QE: Beijing Finds Lack Of Faith Disturbing
    Let’s Not Arm Anyone In Syria
    Attention, Whoever In The White House Monitors This Site. Google ‘Lyndon Johnson Micromanagement Vietnam.’
    World War Is The Danger Of Pacifism.
    President Obama’s 9/10 Strategy In A 9/11 World
    Easy Guide To Obama And The War Powers Resolution
    Lobbyist Advises GOP To Spend Big And Think Small
    Generic Congressional Vote Starting To Look Ugly For Democrats


    QE Future On The Mind, Looming Fed Meeting Causes Economic Uncertainty

    Economists throughout the Nation are waiting with rapt attention to see if this will be the week that Federal Reserve officials lay out a clear exit strategy for its long-running zero interest rate, cheap money policy of quantitative easing.

    As the Federal Open Market Committee meeting planned for Wednesday nears, the consensus appears to be that investors can expect more explanation than action in the Fed’s upcoming meeting. Disagreements remain about how far off an actual change in policy could be.

    In a blog post published on The Wall Street Journal  website, one economist suggests that the FOMC will use the meeting to encourage investors to ready themselves for a coming change in Fed policy.

    A wide range of indicators suggest that investors are starting to think the Fed might start raising short-term interest rates — now near zero — sooner than previously thought. Until recently many market indicators suggested investors expected the first rate increases in mid-2015, but now these indicators indicate investors think it could be sooner…

    Since last December the Fed has been promising to keep short-term interest rates near zero until the jobless rate reaches 6.5%, as long as inflation doesn’t take off. Most forecasters don’t see the jobless rate reaching that threshold until mid-2015.

    At the same time, however, the Fed is talking about pulling back on its $85 billion-per-month bond-buying program. The chatter about pulling back the bond program has pushed up a wide range of interest rates and appears to have investors second-guessing the Fed’s broader commitment to keeping rates low.

    CNN predicts, however, that the Fed will hold off on any real change in monetary policy until late in the year, based on a survey of economists and economic strategists:

    Nearly two-thirds of the 39 people we surveyed said they don’t think the Fed will slow its monthly asset purchases until at least December. Some even noted that the so-called "tapering" may not begin until 2014.

    "Tapering talk seems premature," said Dorsey Farr, partner with the investment firm French Wolf & Farr.

    The rest of the economists and strategists thought the slowdown process would begin at either the September or October meetings.

    Nobody predicted that the Fed will make a change at its upcoming meeting, but Fed watchers are hoping for hints from Bernanke, who will speak at a press conference Wednesday afternoon.

    The disquiet over what the Fed will announce on Wednesday has had a clear economic impact on the markets, on display on Friday as Wall Street slumped and trading of the dollar remained sluggish.

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    There Is Increasing Evidence That The ISIS Is Expanding Into Asia Pacific
    It’s Official: NRIs Love Narendra Modi More Than Shahrukh Khan
    U.S. Jobless Claims Fall, Continuing Claims Lowest Since 2007
    U.S. Housing Starts Fall; Prior Month’s Data Revised Higher
    China’s House Prices Fall Further, Economic Gloom Deepens
    ECB Outlines New Plan That Will Give More Voting Power To Bigger States
    Japan Exports Knocked By Weak U.S. Shipments, Hurt Economic Recovery
    Fed Renews Zero Rate Pledge, But Hints At Steeper Rate Hike Path
    Senator Blasts Revolving Door From D.C. To Wall Street
    Left Hand, Meet Right Hand: Pentagon Discusses Ground Troops In Iraq
    War On Poverty? No, It’s A War On Prosperity
    Obama Should Be Impeached For Aiding And Abetting Arab Petro-Terrorists
    Boehner Calls House Republican Colleagues ‘Knuckleheads’ For Challenging Establishment
    This Russian Trend Is Not Europe’s Friend
    Hilsenrath Backs Away From His “Considerable Time” Prediction
    This Seems To Be Going Well…
    NATO Armed Kiev Under Cover Of Cease-Fire
    Subprime Is Back With A Vengeance
    4 C’s That Could Change The Financial World As We Know It, Again
    The U.S. National Debt Has Grown By More Than $1 Trillion In The Past 12 Months
    China’s Ambassador To Iceland Has Been Allegedly Detained For Leaking Secrets To Japan
    The UN Says Brazil Is Now Rich Enough To Feed Itself
    Do Half Of China’s Millionaires Really Want To Emigrate? Not Exactly
    Why Germans Pay Cash For Almost Everything
    Modi And China’s Xi Must Get Along—They Have Much In Common
    How China’s Foreign And Domestic Policies May Be Fueling The Islamic State
    Obamacare Directly Funds Abortion
    IRS Has 99 Problems But The Church Ain’t One
    Bill Bennett Paid To Pimp For Common Core
    Obama Uses War On ISIS To Overthrow Syria’s Assad
    Read more from Economy & Politics...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.