UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: StuyvesantGrad70 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Worst case for bond funds Date: 5/23/2013 7:49 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
So can deflation occur again???

The Fed is scared about deflation and is doing all it can to prevent it. A few comments yesterday from James Bullard, president of the Federal Reserve Bank of St. Louis:
http://online.wsj.com/article/BT-CO-20130523-705172.html?mod...

Inflation in the U.S. needs to climb back toward the 2% target before the Federal Reserve should consider slowing the pace of its asset purchases. He is "nervous" about the fact annual inflation in the U.S. has been trending down. Annual inflation slowed to 1.1% in April, or 1.7% excluding food and energy prices. He "would like some reassurance" from the economic data that inflation "is going to turn around and go back towards target before we start tapering," using Fed lingo for reducing the pace of its asset purchases from $85 billion a month.

Mr. Bullard currently holds one of the voting slots on the Fed's rate-setting panel that rotate among regional central bank chiefs. He said he expects the unemployment rate in the U.S. to slow to around 7% by year-end. The Fed has said it won't touch short-term rates until unemployment slows to 6.5%. Mr. Bullard said 6.5% is a threshold and not an automatic trigger for Fed action.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Ringing the NASDAQ Bell
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement