Mortgage Bond Purchases

Fed set to signal more easing, stop short of big steps | Reuters.

I have read several articles “predicting” what the Fed will do today. Since these articles are relying on confidential sources within the Fed, we can expect the Fed to extend low interest rate guidance into 2015. Additionally, the Fed will drop hints that it is considering QE3, funding for lending, and cutting the deposit rate it pays banks from .25%.

Why is it that when some sort of intervention does not work the answer is always more intervention? The economy continues to sputter along despite all of the monetary easing, but no one ever considers that perhaps the monetary easing is exacerbating the problem rather than fixing it.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s