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Fed's Bullard Wants Inflation Pickup Before Tapering Qe

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http://uk.reuters.com/article/2013/05/24/uk-economy-fed-bullard-idUKBRE94N07520130524

A top Federal Reserve official said on Friday U.S. inflation would have to pick up before he voted to scale back monetary policy stimulus and that this was unlikely to happen in the coming month.

"Before I would be in favour of tapering I would like to see some reassurance that inflation was going to move back towards target," St. Louis Fed President James Bullard said in a CNBC interview.

"I am concerned about this inflation number and we are only a little ways out from the June meeting so I don't quite see how that is going to turn around in a few weeks."

http://www.economicshelp.org/blog/category/interest-rates/

On BOE

Also, there is always an issue of time lag. It can take 18 months for interest rate cuts to have an effect.

So the Fed wants to see rampant inflation before it acts at which point it might be far too late and require crippling interest rate levels that Volcker introduced.

Still it's nice to see that the Fed is determined to ensure prices keep going up. It's welcoming news.

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http://uk.reuters.co...E94N07520130524

http://www.economics...interest-rates/

On BOE

So the Fed wants to see rampant inflation before it acts at which point it might be far too late and require crippling interest rate levels that Volcker introduced.

Still it's nice to see that the Fed is determined to ensure prices keep going up. It's welcoming news.

Welcoming news for everybody holding gold. B)

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So the Fed wants to see rampant inflation before it acts at which point it might be far too late and require crippling interest rate levels that Volcker introduced.

Still it's nice to see that the Fed is determined to ensure prices keep going up. It's welcoming news.

Indeed. So predictable. Do none of these ******* ever pick up a history book?

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Volcker Says Jobless Rate to Remain Above 6% for Two Years

By Julia Leite - May 15, 2013 7:21 PM GMT+0200

Growth in the U.S. remains too sluggish to cut the jobless rate quickly, leaving it a “long way” from satisfactory levels, according to former Federal Reserve Chairman Paul Volcker.

The unemployment rate may remain above 6 percent for at least another two years, Volcker said at a Brazilian-American Chamber of Commerce event in New York.

The economy “is growing, but not fast enough to reduce the unemployment rate in the way we would like to see,” Volcker said. “It’s declining because the labor force is not rising, and we’re getting a little more employment, but it’s a long way from being satisfactory.”

The U.S. unemployment rate dropped to 7.5 percent in April from 7.6 percent in March and 8.1 percent a year earlier. The rate was last below 6 percent in July 2008.

The Fed called the current jobless rate “elevated” in a May 1 statement. “Labor market conditions have shown some improvement in recent months, on balance, but the unemployment rate remains elevated,” the Fed said.

Volcker helped cut the unemployment rate to an eight-year low of 5.7 percent in 1987, his last year as Fed chairman, after reversing interest-rate increases that brought inflation down from as high as 15 percent.

http://www.bloomberg.com/news/2013-05-15/volcker-says-u-s-jobless-rate-to-remain-above-6-for-two-years.html

Edited by Take Me Back To London!

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The Fed’s Hands Are Tied… Right as the Financial System Begins to Crack

QE doesn’t work. It never has. Look at Japan.

Japan has monetized an amount equal to well over 25% of its GDP via QE. And at that point its bond market began to crash. It’s not coincidence that the Fed is beginning to talk about tapering QE now that this is happening. Even a career academic can look at what’s going on in Japan and know that more QE won’t help the US.

So the Fed is essentially handcuffed at this point. Increasing QE in any way risks a Japan-bond market style rout.

Can you imagine what would happen if the financial system faces another Crisis? The Fed has already thrown everything including the kitchen sink at the system. If the system collapses now the Fed will be powerless to stop it.

http://www.marketoracle.co.uk/Article40607.html

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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