Posted on 08/01/2012 12:35:29 PM PDT by whitedog57
Like Dr. Evil in the movie “Goldmember,” Dr. Bernanke answered the question today about instant monetary relief: “How about NO!“
That is, no change in the Fed Funds Target. Or Twist or QE3.
But he did say that he is willing to do additional monetary easing if necessary to boost economic growth.
“The committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.”
Not surprising in the least. The US has morphed into a highly regulated, highly taxed, hamstrung economy with low M2 Money Velocity. It is difficult to generate further recovery from monetary stimulus when lower rates can’t really do anything.
The reaction in the Treasury market? Yields across the curve rose.
What will Draghi and the ECB do tomorrow? Stay tuned.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
I’m actually liking his decision here. If I get a whiff that he is going to go for QE3, I’m doubling down on PM’s.
What about free 4 yr gov’t/FR loans to The Goldman Sack?
What’s a PM?
Precious Metals.
Or project manager. :-)
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