PIMCO: Forget Bernanke's Ultra-Low Interest Rate, Next Month the Fed Will Tighten Hard With Other Tools
Posted Mar 17, 2010 11:26am EDT by Vincent Fernando in Investing, Newsmakers, Recession, Banking
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From The Business Insider, March 17, 2010:
PIMCO's Mohamed El-Erian has issued an important reminder for anyone who thinks Bernanke isn't tightening monetary policy just because he plans to keep interest rates flat for an extended period.
There are other fed actions, beyond the interest rates, that will tighten policy.
At the end of March, the Fed's $1.25 trillion mortgage-backed security purchasing program will end.
That's a huge form of credit tightening, says El-Erian, since it removes massive liquidity from this market.
finance.yahoo.com |
