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."$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.

Print the post  


This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.