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What to Look for Today at the Fed
The New York Times ^ | December 18, 2013 | BINYAMIN APPELBAUM

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 Fed’s 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 Fed’s 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 ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS:

1 posted on 12/18/2013 4:17:22 AM PST by John W
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To: John W
Almost all financial discussion is pointless. The big money knows what is going to happen ahead of ANY moves in decision-making or markets and the little guy just gets burned. Any information given that appears to be predictive is misinformation. I wonder why people do not get it.
2 posted on 12/18/2013 4:58:04 AM PST by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: John W

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.


3 posted on 12/18/2013 6:08:14 AM PST by Vermont Lt (If you want to keep your dignity, you can keep it. Period........ Just kidding, you can't keep it.)
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To: John W
The Fed has purchased more than $1 trillion in Treasuries and mortgage bonds during 2013 in an effort to encourage job creation

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.

4 posted on 12/18/2013 6:12:25 AM PST by palmer (Obama = Carter + affirmative action)
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To: John W

Maybe the Fed should try putting money into the hands of our producer class instead of the wall street parasites.


5 posted on 12/18/2013 6:43:06 AM PST by freedomfiter2 (Brutal acts of commission and yawning acts of omission both strengthen the hand of the devil.)
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