The release of the December FOMC meeting minutes makes clear one thing: the U.S. Federal Reserve does not have a plan for the course of the stimulus reduction it announced last month.
Fed-watchers are pretty sure they know what the word on a Fed taper will be when the official announcement comes following the Federal Open Market Committee (FOMC) meeting today and tomorrow (Wednesday)…
There’s a very dangerous meme making the rounds.
It goes something like this:
The economy is improving, therefore the Fed’s going to taper… and, when it does, the economy is strong enough to endure the withdrawals that will come with it.
Don’t fall for it.
On December 23rd, the Federal Reserve will turn 100 years old.
We can look back on its few successes… but its many failures far outweigh any positives it may have achieved.
What’s at stake now is the Fed’s future. And it looks bleak.
Let’s talk about the so-called Volcker Rule.
When the Dodd-Frank Act was signed into law in 2010 – the bank-busting, save the system, “we’ll never again have a financial meltdown that could destroy the world” legislation – it was more of an outline.
This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street…
Don’t worry. The bubble “Quantitative Easing” has built is still intact. For now.
However, even though there’s breathing room, don’t think it’s time to breathe easy. There will be Hell to pay, just not now.
There’s considerable dissension within the ranks at the Federal Reserve, with many of Chairman Ben Bernanke’s colleagues saying the Fed’s monthly purchase of $85 billion in bonds should end by late this year.
“About half” of 19 Fed members “indicated that it likely would be appropriate to end asset purchases later this year,” according to minutes of the June Fed policy-making committee meeting, released Wednesday.
This is a syndicated repost published with the permission of Money Morning – Only the News You Can Profit From. To view original, click here.…