Daily Archive: Thursday, March 10, 2011

QE and the term structure of rates

Background information first, answer later- The Fed sets the fed funds target at their regular meetings, and lets the market then determine the term structure of rates. That term structure of rates is therefore largely a function of anticipated future fed funds rate settings. Then the Fed does QE- buys longer term ...Read More

labor charts

So this was a good monthly employment report? Ok, there were a few new jobs, but not nearly as many as there used to be each month a few years ago, in an economy a lot closer to full employment, with a much smaller output gap, and one that was considered only ...Read More