We?ve been conditioned by numerous post-FOMC press releases to expect a continuation of near-zero target Federal Funds rates for an extended period. Unfortunately, that ?promise? means that it has to be withdrawn before a modification can be made?else it becomes a broken promise. I say unfortunately because the time has come to increase the rate target by a nominal amount to begin reducing the distortions such an artificial rate causes in financial markets. One-half percent or three-quarters percent isn?t high by any means, but it would be a useful signal of the beginning of normalcy. Besides, bank deposit customers need some relief.
Meanwhile, what came to be called?unfortunately in my opinion?QE2 was begun with an announcement of a specific amount of $600 billion and an end date of June 30. Consequently, it has been taken for granted that the natural order of things is for QE2 to be ended, replaced,
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Michael Michele Marisa Tomei Shannyn Sossamon Rachael Leigh Cook Elisha Cuthbert
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