• Tag Archives End The Fed

  • What Yellen didnt tell Congress and why it matters

    Posted on by Azrael Comment

    The most revealing thing about Janet Yellen’s widely praised Senate confirmation hearing performance last week might not have been what she said, but what she didn’t say – and how she didn’t say it.

    President Barack Obama’s nominee to be the next chair of the Federal Reserve smiled and nodded her way through a two-hour hearing on Thursday without giving the Senate Banking Committee any real clues as to how she views near-term monetary policy choices.

    She made plain that she thought it important to maintain aggressive efforts to spur U.S. economic growth and hiring. But her comments went no further than last month’s statement from the Fed’s policy-setting committee.

    Senators asked her how long the central bank could keep buying bonds, and seemed satisfied with her mild observation that purchases could not go on forever. She provided no clues to whether she leans toward reducing them next month, or next year.

    Full article: http://www.reuters.c … dUSBRE9AC16R20131117


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  • Andrew Huszar: Confessions of a Quantitative Easer

    Posted on by Azrael Comment

    Where are we today? The Fed keeps buying roughly $85 billion in bonds a month, chronically delaying so much as a minor QE taper. Over five years, its bond purchases have come to more than $4 trillion. Amazingly, in a supposedly free-market nation, QE has become the largest financial-markets intervention by any government in world history.

    And the impact? Even by the Fed’s sunniest calculations, aggressive QE over five years has generated only a few percentage points of U.S. growth. By contrast, experts outside the Fed, such as Mohammed El Erian at the Pimco investment firm, suggest that the Fed may have created and spent over $4 trillion for a total return of as little as 0.25% of GDP (i.e., a mere $40 billion bump in U.S. economic output). Both of those estimates indicate that QE isn’t really working.

    via Andrew Huszar: Confessions of a Quantitative Easer


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  • Rand Paul to place hold on Fed chair nominee

    Posted on by Azrael Comment

    Sen. Rand Paul (R-KY) has informed Majority Leader Harry Reid (D-NV) of his intention to place a hold on Federal Reserve chair nominee, Dr. Janet Yellen, until the chamber votes on S. 209, the Federal Reserve Transparency Act.

    “I am writing to convey my objection to floor consideration of the nomination of Dr. Janet Yellen to Chair the Board of Governors of the Federal Reserve without also considering legislation to bring much-needed transparency to the Fed,” wrote Paul in a letter to Reid, delivering on a threat he made last week.

    via Rand Paul to place hold on Fed chair nominee


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