The End of the Beginning for QE in the US...?

Generali

http://www.bloomberg.com/news/2013-08-21/fomc-minutes-show-broad-support-for-bernanke-tapering-timeline.html

Federal Reserve policy makers were “broadly comfortable” with Chairman Ben S. Bernanke’s plan to start reducing bond buying later this year if the economy improves, with a few saying tapering might be needed soon, minutes of their last meeting show.

ILW

Odd the way markets now go belly up on the idea that things are getting better.

grizzly1911

ILW wrote: »

Odd the way markets now go belly up on the idea that things are getting better.

Perhaps markets don't believe things are getting better.

A bit like a second hand car salesman telling you that nice little yugo isn't a lemon.

Thrugelmir

ILW wrote: »

Odd the way markets now go belly up on the idea that things are getting better.

Perhaps the wind affecting the global economy has dropped from 12 to 9 on the Beaufort scale , i.e. a hurricane to a gale.

purch

The Fed will not substantially reduce it's asset purchase program until the unemployment rate falls below 7%

The unemployment rate will not be falling below that level anytime soon.

Unemployment rates rise in most US states in July

http://www.cnbc.com/id/100974182

Jobless picture is worse than you think: Gallup

http://www.cnbc.com/id/100981153

nickj_2

surely QE is only sticking a band aid over a severed limb

lvader

The proposal is too increase QE at a slightly slower rate, there is a long way to go before any resemblance of a normal economy resumes.

Thrugelmir

purch wrote: »

The Fed will not substantially reduce it's asset purchase program until the unemployment rate falls below 7%

Like Carney, the Fed isn't tied to a single mandate.

Minutes of last meeting suggests that asset program will finish by middle of next year. So tapering is on its way.

lvader

Unlike here the fed have the added issue of inflation coming in consistently below target, they are basically on the verge of deflation.

sabretoothtigger

I believe beginning of the end for QE because its obviously easier to ramp up then decline gracefully
. Markets always move ironically, sell the news buy the rumour and al that, things are most definitely not as they seem

Tapering suggests careful adjustment but I do not believe this resembles the scenario they must control in future. Maybe they are skilful but it wont be done with baby steps

purch

Thrugelmir wrote: »

the Fed isn't tied to a single mandate.

Yes, I am fully aware of that.

The Fed will not substantially reduce it's asset buying program until unemployment is below 7%, and it will not reach that level anytime soon. In fact there is quite a lot of evidence that it will rise before it falls again.