We have read a couple of pieces published by the St. Louis Fed. Its president, James Bullard, has been one of the more centrist-to-hawkish regional presidents. This means that he has been more willing than some Fed regional presidents to "taper", or end the Fed's bond-buying program (which, keep in mind, is designed to keep interest rates very low).
So it came as a surprise to the markets when he wondered aloud if the Fed's bond-buying programs (aka, "quantitative easing") should continue. Why would he say that? Well, a key economic indicator came in lower than expectations. From our discussion the other day, see if you can guess which one (though there a few possible "correct" answers to this).
Once you've made your guess, go here and see the video clip and story.
No comments:
Post a Comment