Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (109431)	1/2/2015 2:53:53 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217906

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.”

To: elmatador who wrote (109431)	1/2/2015 8:41:53 AM
From: Metacomet	Respond to of 217906

FED is trying to create fear to make people run to the USD. ...why would they want to do that? ..here is the original mandate of the Fed The U.S. Congress established three key objectives for monetary policy in the Federal Reserve Act: Maximum employment, stable prices, and moderate long-term interest rates ..although Its duties have expanded over the years, and today, according to official Federal Reserve documentation, include conducting the nation's monetary policy, supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to depository institutions, the U.S. government, and foreign official institutions. en.wikipedia.org ..as your original article pointed out, there are numerous currents at work in the world outside the control of US monetary policy. ..seems a bit disingenuous to posit that by working to maintain its mandate domestically, the fed is trying to create fear elsewhere ..not sure where that fits in the calculus of rate setting here I suppose the good news is that the trading vehicle, based on the real value of stuff in a basket, will soon arrive to protect the world from the evil machinations of Janice Yellen