2014-02-11 — reuters.com
``It was more than a year ago that the U.S. central bank first promised not to raise interest rates until joblessness fell to at least 6.5 percent, a pledge that policymakers thought would hold until at least mid-2015. The Fed still wants to assure investors that rates will stay low for at least another year, but there is growing debate among policymakers over how to get this message across now that the jobless rate stands at 6.6 percent but the pace of job creation remains erratic at best.''
But as we pointed out last August, Bernanke dropped a HUGE hint (which almost no one picked up on) that the Fed was reserving the right to (or would likely) blast through the employment rate "condition" to ending QE/ZIRP:
Bernanke said that the U-3 "headline" unemployment rate might not be enough to spur the Fed to taper QE. It is shocking that this article (and so few others) have picked up on this. To us, it shows that Bernanke is clearly looking for an "out" to continue with QE, even if the headline U-3 unemployment rate falls to the Fed's soft "target."
So, only those who don't follow ML-Implode should be surprised today.
QE to infinity, lads!
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