Monday, March 4, 2013 - 7:58 PM
It appears that Yellen forsees ZIRP for years to come:
Federal Reserve Vice Chairman Janet Yellen (the probable next Chairperson) said the U.S. central bank should press on with $85 billion in monthly bond buying while tracking possible costs and risks from the unprecedented program. “Turning to the potential costs of the Federal Reserve’s asset purchases, there are some that definitely need to be monitored over time,” Yellen said today in a speech in Washinton. “At this stage, I do not see any that would cause me to advocate a curtailment of our purchase program.”
The markets have programmed in that Yellen will succeed Bernanke and rose smartly in reaction to her comments.
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1. Monday, March 4, 2013 - 9:37 PM
Someday it may not be up to her if interest rates rise in response to inflationary concerns or loss of confidence from our creditors. There is a fair amount of hubris or arrogance among our Fed Reserve members who always think they control intermediate and long-term rates. They can until they can't.
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