Econ Comments & Analysis
USA Today | Deflation, not inflation, could bedevil markets
The yield on the bellwether 10-year Treasury note dipped to a 2013 low of 1.62% Wednesday as traders' worries turned from inflation to falling prices. The latest economic reports shows wage pressures are less than half what the Federal Reserve says is acceptable.
Businessweek | Why the Fed Worries Inflation Is too Low
The Federal Reserve’s rate-setters announced on Wednesday that they are forging ahead with ultra-easy money, in part because inflation is running “somewhat below” the Fed’s target of 2 percent. The Federal Open Market Committee said it will leave the funds rate where it is, just above zero, and keep buying bonds at a pace of $85 billion a month.
NY Post | Sink QE! (the money-printing plan, that is)
The Federal Reserve made it official yesterday, saying it’s full steam ahead for the money-printing operation that is creating all sorts of financial dislocations without helping the economy grow very much.
Blogs
Economist | Risk-aversion risk
[D]evelopments on growth and inflation would ordinarily argue for a bias to raising, not lowering, QE. But an increase in QE is unlikely, for two reasons.
Economist | Fearful symmetry
The Federal Reserve, as widely expected, stood pat today, reaffirming its commitment to near zero interest rates until unemployment fell to 6.5% or lower, and continuing to buy $85 billion of Treasury and mortgage-backed bonds until the jobs market improved substantially.
