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Fed Chief's Exit May Spell The End For US Economic Stimulus

Sunday, December 15, 2013 - 9:25 AM
"Ben Bernanke's quantitative easing scheme appears to have done the trick. But when will the Federal Reserve pull the plug?"

Fed chief's exit may spell the end for US economic stimulus | Business | The Observer

Perhaps wishful thinking. That's all.
7
ShorebreakShorebreak2,364 posts since
Apr 6, 2010
Rep Points: 12,576
1. Sunday, December 15, 2013 - 10:53 AM
"The biggest risk now is, can they bring this to an end gracefully?"

I seriously doubt it.  The stock market and everybody involved are all spoiled.  Taking away a nice toy from the kids (or may I say drug for addicts) is going to have a violent reaction (at the end of the day). 
5
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
2. Sunday, December 15, 2013 - 11:35 AM
If Bernanke's Quantative Easing has "done the trick" won't Yellen continue it?  Seems to me savers will just get more of the same low rates unless Yellen makes some changes.  Time will tell.
4
paoli2paoli21,139 posts since
Aug 10, 2011
Rep Points: 5,077
3. Sunday, December 15, 2013 - 11:58 AM
Thought the key to easing was the unemployent rate. Yellon said she agreed with that assessment. 
4
AllyAlly772 posts since
Jan 16, 2010
Rep Points: 2,248
4. Sunday, December 15, 2013 - 12:11 PM
"Ben Bernanke and the Federal Reserve have made the manipulated and distorted stock market ground zero in the war to convince us all is well. The idea is that a soaring market will bolster pension funds, support housing prices, and generate a wealth effect is flawed, instead it only creates a bubble. Fact is if QE or the massive government deficit spending that props up our economy is removed it will collapse."

Advancing Time: All A Twitter In The Greed And Stupidity Loop
5
ShorebreakShorebreak2,364 posts since
Apr 6, 2010
Rep Points: 12,576
5. Sunday, December 15, 2013 - 12:27 PM
Wonderful that a blogger has all the answers!!!  If he has all the answers why isn't he fed chief? Guess he doesn't realize that the fed gets its mandate from Congress. His blame is misplaced. OR MAYBE HE WANTS US TO BE LIKE EUROPE? Maybe he should have put his name in the hat for fed chief. 
3
AllyAlly772 posts since
Jan 16, 2010
Rep Points: 2,248
6. Sunday, December 15, 2013 - 4:25 PM
Re: Ally @ 5. Sunday, December 15, 2013 - 12:27 PM

Since Congress has abdicated it's responsibility to the Federal Reserve, Chairman Bernanke has become the 'Head Poobah' for this country's economic direction. Therefore, criticsm toward Bernanke is justly deserved.
4
ShorebreakShorebreak2,364 posts since
Apr 6, 2010
Rep Points: 12,576
7. Sunday, December 15, 2013 - 4:47 PM
So Congress did a good job until 1978? This was passed to stop stagnation.

 

The Full Employment and Balanced Growth Act of 1978, more commonly known as the  HH, established price stability and full employ- ment as national economic policy objectives. The act is said to establish a dual mandate for the Federal Reserve of maximum employment and price stability 
1
AllyAlly772 posts since
Jan 16, 2010
Rep Points: 2,248
8. Sunday, December 15, 2013 - 5:44 PM
Thank you Ally for confirming my post #6.

The Act encouraged the government to develop a sound monetary policy, to minimize inflation, and to push toward full employment by managing the amount and liquidity of currency in circulation. The government has since abdicated that responsibility to the Federal Reserve.
4
ShorebreakShorebreak2,364 posts since
Apr 6, 2010
Rep Points: 12,576
9. Monday, December 16, 2013 - 8:25 AM
In #6 you posted

Since Congress has abdicated it's responsibility to the Federal Reserve, Chairman Bernanke has become the 'Head Poobah' for this country's economic direction. Therefore, criticsm toward Bernanke is justly deserved.

I assumed you meant that 'Head Poobah' (Bernanke" was given a NEW MANDATE. So you meant that each of the fed chairs have become a "Head Poobah since the HH of 1978? It wasn't clear to me and I misunderstood. So every other chief was OK for doing as mandated as 'Head Poobah' but not Bernake? Which is it? 

Never heard of the term head poobah but have heard the term "Grand Poobah". It was used locally for the person running the  American Legion.
1
AllyAlly772 posts since
Jan 16, 2010
Rep Points: 2,248
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