Fed May Not Increase Rates Until 2012, Bullard Says

[WildspitzE]

http://www.bloomberg.com/apps/news?p...35jJZM_g&pos=1

"Nov. 18 (Bloomberg) -- Federal Reserve Bank of St. Louis President James Bullard said policy makers may not start to raise rates until early 2012 while facing a “too low for two long” argument that may “weigh heavily” on the central bank. ..."

Nice "signaling" LOL.

[aaron]

Re: Fed May Not Increase Rates Until 2012, Bullard Says

“Stronger-than-expected global growth, especially in Asia, has been a main force” contributing to U.S. growth, Bullard said. Personal consumption and the housing sector have stabilized, while the stress in financial markets is abating, he said."

But we need 0% rates?

[Raz]

Re: Fed May Not Increase Rates Until 2012, Bullard Says

“Stronger-than-expected global growth, especially in Asia, has been a main force” contributing to U.S. growth, Bullard said. Personal consumption and the housing sector have stabilized, while the stress in financial markets is abating, he said."

But we need 0% rates?

The Fed's owners (the banksters) need 0.0% rates so they can literally coin money.
(And I do mean literally; if they have any sense they are taking their gains and transferring them to real, constitutional money - gold.)

These rat-bastards should all be working on a Chain-Gang.:mad::mad:

[icm63]

Re: Fed May Not Increase Rates Until 2012, Bullard Says

more of the same ...

http://www.itulip.com/forums/showpos...&postcount=135

[Slimprofits]

Re: Fed May Not Increase Rates Until 2012, Bullard Says

Bullard Says Fed Should Keep Asset Program Past March

http://www.bloomberg.com/apps/news?p...d=act_vr3x0Ofc

Nov. 23 (Bloomberg) -- Federal Reserve Bank of St. Louis President James Bullard said the central bank should retain the flexibility to respond to any weakening in the economy by extending beyond March its authority to buy mortgage-backed securities and agency bonds.

“I would just like to keep them active at a very low level instead of saying we’re shutting down, shutting down permanently,” Bullard told reporters after a speech yesterday in New York. “Initially it would do nothing for the economy, but it would give the Fed the option to react to future news as it comes in.”

“If the economy came in very weak, let’s say, in 2010, weaker than expected, we would have the option of doing further quantitative easing” through additional asset purchases, Bullard said. “If the economy came in stronger than expected and inflation expectations started to ratchet up a little bit we could maybe sell off some of these assets and remove some of the accommodation from our quantitative easing program.”

“The U.S., in fact, has large government budget deficits right now,” Bullard said. “So I worry about this issue. I worry about erosion of Fed independence. Even talk of eroding Fed independence can be counterproductive for the economic recovery.”

“I think we’ll grow at or above the long run rate of growth for the U.S. economy in the postwar era, which is about 3 percent,” he told reporters. “If you could get growth up at 4 percent then you could get the unemployment rate down.”

A 4 percent growth rate is “a clear possibility” as the global recovery is “going quite a bit better than I anticipated six or nine months ago,” he said.

Concerns among U.S. households about the economy and their own financial situations “have settled down some, and consumption spending is growing,” he said. At the same time, stress in the financial markets has “settled down a lot.”

Consumer spending is growing?

[lsa420]

Re: Fed May Not Increase Rates Until 2012, Bullard Says

more of the same ...

http://www.itulip.com/forums/showpos...&postcount=135

I checked your link and you are exactly right icm.

So the last time , 1% interest rate induced malinvestment led to a housing bubble. I'm sure they've figured everything out and this time around the 0% outcome will be much more favorable.:confused: