No. of Recommendations: 3

"It's official: The Fed acknowledges it may not (will not) raise interest rates, even if it ever reduces its debt purchases."

The Federal Reserve may keep interest rates near zero after its bond-buying ends, even after hitting its targets for unemployment or inflation, in order to maintain stimulus, Vice Chairman Janet Yellen signaled.


"Apparently, the Fed is determined that stock and asset prices should go "to the moon" and that retirees and small investors should take on even more risk in a futile search for yield."

http://stockcharts.com/freecharts/gallery.html?$USB

Notehound you are misreading some of this. I have been saying the bond buying was PROBABLY going to end this year. The FED funds rate is staying low, yes. In that you are right and it is a rip off of the general public. But the point of Yellen's comments is that the long end of the curve is going to see higher yields.

The FED has been putting out signals they intend to cut the bond buying down or out. That means still more monetary tightening in relative terms.

Taxes are up that is fiscal tightening. And oil prices are high.

We have not seen the next bottom in this bear market yet.

Dave
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