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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 374.22-0.2%4:00 PM EST
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To: elmatador who wrote (109431)1/2/2015 2:53:53 AM
From: Elroy Jetson  Read Replies (1) of 217917
 
I think a lot of people have completely misinterpreted and sensationalized any rise in rates the Fed may make.

So what if the Fed increased their Discount Rate from 0.75% to 1.00% and their Fed Funds Rate from 0.25% to 0.5%? The world and the U.S. economy would not come to an end.

The Fed's initial move would probably be half the amount of this rise. Of course Ambrose Evans-Pritchard imagines the catastrophe caused by the Fed quickly raising rates by 2% or 3%. That makes for spicy copy, but nobody in the world believes that, least of all he.

Yellen said. “Monetary policy will still be very accommodative for a long time” after rates rise.

Federal Reserve Chair Janet Yellen said the central bank is unlikely to move before the end of April and that borrowing costs will remain low for a “long time” after liftoff.

Yellen spoke after the Federal Open Market Committee announced it will be “patient” on the timing of the first rate increase since 2006, replacing a pledge to hold rates near zero for a “considerable time.”

“The timing of the initial rise in the fed funds target as well as the path for the target thereafter are contingent on economic conditions.”
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