Skip to comments.What to Look for Today at the Fed
Posted on 12/18/2013 4:17:22 AM PST by John W
Ben S. Bernanke, chairman of the Federal Reserve for a few more weeks, will hold his last official news conference on Wednesday afternoon, shortly after the Feds policy-making committee announces its plans for the global economy.
The Fed has purchased more than $1 trillion in Treasuries and mortgage bonds during 2013 in an effort to encourage job creation. It is a campaign that was supposed to be winding down by now.
Mr. Bernanke said in June that the Feds policy-making committee currently anticipates that it would be appropriate to moderate the monthly pace of purchases later this year. Moreover, he predicted that the Fed would end the purchases when the unemployment rate was in the vicinity of 7 percent, a milestone reached in November.
Yet most analysts expect the Fed to say on Wednesday that it will keep buying bonds at the present pace at least until the end of January and perhaps even longer.
The case for more is easily summarized. The Fed has two jobs, and it is failing at both. Unemployment remains high; inflation remains sluggish.
(Excerpt) Read more at economix.blogs.nytimes.com ...
If he tapers, the market craters.
Two weeks before the end of the quarter? With high inventories?
Forcing interest rates up?
I doubt we see any tapering before next summer.
Not so much job creation but job retention for politicians, specifically federal politicians (both parties) who like spending the dollars that the Fed prints up for them.
Maybe the Fed should try putting money into the hands of our producer class instead of the wall street parasites.