Some thoughts on the Fed’s QE stance

A week ago I wrote that I believed QE will end this year after tapering off in June. I stand by this stance. However, we have heard from three Fed officials in the interim and I wanted to pass on what they are saying to gauge how likely it is that the Fed will taper QE in June and end it in 2014.
The Wall Street Journal's blog Real Time Economics picked up on all three. First, there's Charles Plosser of Philadelphia. Note that while what he says influences policy, Plosser is an alternate member of the FOMC and cannot vote on decisions.
The WSJ wrote:

The leader of the Philadelphia Fed said Tuesday any central bank exit strategy should return the institution to its pre-crisis roots, and he warned his colleagues not to over-rely on a relatively new power that allows them to pay interest on ...

As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More