It is not accurate to then assume that rates will just gradually rise back to where they were before all three conditions were in place. Here's why.
QE is neither a quantitative nor an 'easing' term of art for the most important calibrator of the world economy to use.
In surveying the year in landscape architecture, "aptness," a word favored by the great Modernist landscape architect Dan Kiley seems, well, appropria...
Welcome to the age of Central Bank Power. Since the 2008 crash, the U.S Federal Reserve Bank has become a new type of global hegemon.
Inflation is not a thing of the past. It has merely gone underground for a while. I believe it is inevitable that it will eventually reappear in its traditional form of rising prices for food, fuel, rent, clothing, and other basic costs of living, and you will see this begin in 2014.
The minutes suggest that this is a Fed that is contemplating not only what could go right if it continues on the current policy path but also what could go badly wrong.
If your timing is off, it may also cause you to fall short of market returns. This is not a responsible or an intelligent way to invest.
President Kennedy was not assassinated for being anti-Fed. I don't know how much more clearly that can be said. His death on November 22nd, 1963 was a sad tragedy, but it had nothing to do with any stupid and baseless Executive Order silver certificate conspiracy.
What happened on that late-summer day? It was a Sunday, and President Richard Nixon suspended convertability of the US dollar into gold, effectively ending the 25-year Bretton Woods era of fixed currency exchange rates against the US dollar.
All's I'm sayin' here is that we still have a lot of slack in the job market, highly elevated unemployment, and a strong rationale for aggressive monetary stimulus, not to mention fiscal stimulus, but that is blocked by government dysfunction. The message here is thus: good for the politically independent Fed for keeping the monetary pedal to the metal.
By maintaining an unchanged policy stance, the Federal Reserve delivered on consensus market expectations. The question now is: How long will this sustain the mix of financial conditions that the Fed and investors desire, and is needed to improve job prospects given the extent of Congressional dysfunction?
What is there to say about Alan Greenspan, who at 87 is out flogging his new book, "The Map and the Territory: Risk, Human Nature and the Future of Fo...
The controversy over the Federal Reserve tapering its bond purchases, which are part of Quantitative Easing 3 is largely misunderstood. And now the debate may need to be reopened because the debt ceiling debate may significantly be weakening demand for U.S. Treasuries.
Sin and Redemption, often the cry of the religious right politicians, a possibility for the Federal Reserve Bank to restore its reputation. Through Q...
The massive wave of bank megamergers that took off in the 1990s had plenty of unfortunate results, including the invention of the phrase "too big to fail." Fewer mergers are happening now, but the ones that do happen can have a huge impact on communities.
If we need any more evidence that Janet Yellen should be the next Federal Reserve Chairperson, it was the decision by the Fed Governors to continue th...