And what fun it’s been, even if we don’t remember it quite as fondly as the go-go days of Alan Greenspan. And since we’ll be without a Fed chairman or -woman this weekend, you’ll have plenty of time to reflect on the bearded sage and his place in history, perhaps with whiskey and a Miller High Life chaser. Read more »
Was he inspired by Monday’s gathering of his (two) living predecessors and their talk of legacy? Was he trying to keep Esther George from becoming the third person to go eight-for-eight in dissents? Or was the sly gray fox slow-playing us all along? Either way, history will note that it was Ben Bernanke who both began and began to end the great stimulus measure known as quantitative easing, and that the economy will have to try to survive being propped up with just $75 billion in bond purchases each month. Read more »
Before the Federal Open Market Committee began pretending to kick around the idea that maybe it might actually begin to cut its bond buys now, rather than, say, in the future, Ben Bernanke and co. threw themselves a little birthday party featuring the Beard’s only two surviving predecessors, to commemorate the signing of the bill that made all of the ink spilled about tapering stimulus programs possible. Read more »
FYI. Read more »
Among the many reasons given by the Federal Reserve for their reluctance to buy, say $80 billion in bonds each more instead of $85 billion, is that U.S. policymakers continue to refuse to make policy. Like, say, policy to keep the government operating.
Sen. Patty Murray (D., Wash.) and Rep. Paul Ryan (R., Wis.), who struck the deal after weeks of private talks, said it would allow more spending for domestic and defense programs in the near term, while adopting deficit-reduction measures over a decade to offset the costs….
Some investors say that the deal could push forward the Federal Reserve’s taper timetable. In September when the central bank surprised investors and kept its $85 billion-a-month bond-buying program in place, it cited the looming budget battle as a reason for caution. But now, that risk has diminished.