QE Archive

Fed minutes

Bill McBride and I agree this is the key takeaway. That is, the Fed still sees the risks as asymmetrical and therefore prefers to err on the side of ease. So stocks soar on the belief that low rates from the Fed will support earnings and valuations, as interest rates stay low ...Read More

Professor Andrea Terzi quoted on CNBC

Well done!!!! You’d think he’d turn to Brits like Charles Goodhart who wrote volumes on it for the last 50 years! ;) How QE may be doing more harm than good By Paul Gambles May 7 (CNBC) — I’ve spent the last few weeks talking almost entirely about the Bank of England’s ...Read More

QE is a Tax

QE is a Tax By Chris Mayer May 2 — QE is a tax. That’s an odd thing to say about the Fed’s bond-buying stimulus program, known as quantitative easing, or QE. But the reality of QE is different than what most people think… To talk about this, I sought out Warren ...Read More

qe letter reprinted

Thanks! And I’m sure Barry remembers who was on the other side of that trade! ;) 2010 Reminder: QE = Currency Debasement and Inflation By Barry Ritholtz November 15 — One of my biggest complaints about the media is the lack of accountability. People say things on TV in print an on ...Read More

Comments on Volcker article

Here’s my take on the Volcker article My comments in below: The Fed & Big Banking at the Crossroads By Paul Volcker I have been struck by parallels between the challenges facing the Federal Reserve today and those when I first entered the Federal Reserve System as a neophyte economist in 1949. ...Read More

Dudley still doing wrong

He still thinks bond buying is stepping on the gas pedal, when it’s actually the brake pedal. Latest Jobs Report Gives Me Pause, Says Fed’s Dudley April 16 (Reuters) — An influential Federal Reserve official said on Tuesday the weak March jobs report made him more cautious on how far the economy ...Read More

Was Quantitative Easing A Tax?

Good to see someone telling it like it is! Was Quantitative Easing a Tax? By John Carney March 29 (CNBC) — In the last of his four lectures to students at George Washington University, Ben Bernanke explained how the Fed’s quantitative easing programs worked. As it turns out, they were akin to ...Read More

Fed WSJ Article on QE/Twist

From: Fed Weighs ‘Sterilized’ Bond Buying if It Act Many Fed officials believe strongly the bank reserves it has created as part of this money creation aren’t an inflation threat. But they are acutely aware of a popular perception, also held by a few inside the Fed itself, that the money the ...Read More

GE to 3M Pension Pain Mounts as Rates Boost Liabilities

Feel free to forward to your local Fed President, to remind them that rate cuts do remove income from savers and from the economy in general, as the economy is a net saver to the tune of the cumulative govt debt (to the penny). (And not to forget the $80 billion or ...Read More

The Fed’s operation tweet vs twist

Seems to me the force keeping yields down on the short end can be called operation tweet, as the Fed is simply announcing its forecasts for lower rates, which are subject to immediate change, data dependent. But with operation twist, the Fed actually buys the longer term securities vs just talking about ...Read More