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Yellen Taking Over Fed 'Could Mean Interest Rates Near Zero Until 2017'

Thursday, November 14, 2013 - 8:58 AM
Some economists are saying that if Yellen takes over the Fed, interest rates could be held to near zero until sometime into 2017:

New Fed Chair Could Mean Interest Rates Near Zero Until 2017 | Daily Ticker - Yahoo Finance

None of the economists quoted in that story see interest rates moving up at all in 2014. Bloomberg was suggesting the earliest datee, in 2015.

From the story:
“Her whole focus has been on the forward guidance – the communication that the Fed gives about the outlook for interest rates,” says (Michelle) Girard (chief US economist at RBS). “And a lot of her work suggests rates may not to be raised until 2016 maybe 2017.”

(p.s. -- don't blame me for such a ridiculously big blockquote. It won't take html, and the " symbol at top to do a block quote won't allow me to make it any smaller than this.)
me1004me1004373 posts since
Jan 16, 2010
Rep Points: 2,597
1. Thursday, November 14, 2013 - 9:02 AM
Guesses, guesses.  All of them.  No one really knows what is going to happen in our future with interest rates so I am going with my gut feelings which have always done best for me.  Let them play all their games of "Let's Pretend".  I don't have time for guesses.  However, Yellen has to come up with something so her guess is as bad as anyone elses I suppose.
paoli2paoli21,400 posts since
Aug 10, 2011
Rep Points: 6,132
2. Thursday, November 14, 2013 - 1:11 PM
There is no doubt, after listening to Yellen's congressional testimony today, that she will double-down on QE and ZIRP. The markets are celebrating with champagne and confetti, as they have their Goldilocks in the Fed Chairmanship now.  If Ben Bernanke was known for the cliche of dropping free money from a helicopter, then Janet Yellen will be dropping bags of the increasingly worthless paper out of a B-52 bomber.
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,523
3. Thursday, November 14, 2013 - 8:27 PM
Well we do have growth even though it is slow. Europe has .1% growth. They must be doing something better than Europe. 
Ally6770Ally6770931 posts since
Jan 16, 2010
Rep Points: 2,707
4. Tuesday, November 19, 2013 - 8:27 AM
Yellen also suggested savers should be willing to see their wealth eaten away for what the Federal Reserve considers the greater good of society.

She argued that savers “play many different roles in the economy” and if they “take into account the broader array of interests they have in a strong economy, they would see that these policies — even though they may harm them in one respect — are broadly beneficial to them as I believe they are to all Americans.”

Obama’s choice for Fed chair: Hurting savers is good policy | The Daily Caller
ShorebreakShorebreak2,675 posts since
Apr 6, 2010
Rep Points: 14,523
5. Tuesday, November 19, 2013 - 9:11 AM
Maybe this statistical information will help explain the need to help those most in need of help.

The lastest information available I could find on poverty by age through Dec 2011. 

% of children in poverty 21.9% down from 22% in 2010

% of people 18-64 ------ 13.7% down from 13.8% in 2010

65 and older---------------  8.7% down from 8.9% in 2010

Those living in poverty are desperate but at least most of the seniors living in poverty have a steady income with their SS. I had a customer that was a teacher in Chicago and came home after 7 years of teaching to care for a father who had a stroke and a mother with many health issues including crippling rheumatoid arthrtis. Her parents have recently passed and the daughter is 64 and does not have the minimum years of employment to be able to even receive SS. Now that is poverty. She has sold her parents property and paid their bills and has income of $450 a month.  She is on a list to get into senior subsidized housing. She lives in small town and she did not want to move 40 miles away from places she is familiar with. More housing is being built in her town. She picks blueberries, and packs apple is boxes when she can get a ride or does other work as she can get it. She also has health issues and will not qualify for Medicare. She is trying to get on Medicaid to get medication for her rheumatoid arthritis. 

My point is we all have issues but there is always someone worse off than we are. 
Ally6770Ally6770931 posts since
Jan 16, 2010
Rep Points: 2,707