Bonded Bernanke

By Econ70 | 12/18/2013

By perfectly calibrating his message, this time, Bernanke was able to taper yet see equities climb by 1.75% and bond prices barely budge. Quite a difference from this past May. By combining tapering with a commitment to keep short-term rates low into 2015, Bernanke has reduced uncertainty and compensated markets for the knowledge that QE…

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Money, Money, Money

By Econ70 | 06/07/2012

Given weak job numbers, a slowing world economy, and escalating financial stresses from Europe, the Fed will probably act. Since it can’t buy more long-term Treasuries (it nearly owns them all) or increase the size of its balance sheet (Republicans get angry) it’ll renew Operation Twist, which ends in June. The Fed will sell short…

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