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When will the Fed announce QE4?
Posted: Wed Oct 15, 2014 12:41 pm
by Libertarian666
We know that the Fed doesn't want the stock market to go down. So when will they announce their next stimulus plan?
Re: When will the Fed announce QE4?
Posted: Wed Oct 15, 2014 3:30 pm
by Reub
The Fed knows that the piper must be paid for their excesses. What better time to do it than during the last 2 years of a lame duck administration which no longer cares about getting votes and winning elections?
Re: When will the Fed announce QE4?
Posted: Wed Oct 15, 2014 3:45 pm
by Mountaineer
I thought this was a thread about ship building.
... Mountaineer
Re: When will the Fed announce QE4?
Posted: Wed Oct 15, 2014 5:49 pm
by moda0306
The stock market is simply rationally reacting to the bond market. The bond market is simply rationally reacting to the feds setting of interest-rate floors with the treasury market and banking system. The fed does this to manage the balance between full employment and price stability.
Right now, price stability is less of a problem than the lack of full employment.
Therefore, continued low rate floors.
Not that there isn't some bankster shadiness that goes on behind the scenes, but it's really that simple. Significant lags in aggregate dmand have kept inflation low in the face of money-printing and low interest rate floors. There's no piper to be paid. And if there was, the super efficient market would do something to indicate it

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