Monday, September 27, 2010

Fed Is Ready to Muddle and Muck About

News Alert
from The Wall Street Journal

"Federal Reserve officials are considering new tactics if they resume purchases of long-term U.S. Treasury securities to bolster a disappointingly slow recovery. Rather than announcing massive bond purchases with a finite end, Fed officials are weighing a more open-ended, smaller-scale program that they could adjust as the recovery unfolds. The Fed hasn't yet decided to step up its bond purchases. After its last meeting, the Fed’s policy committee said it was “prepared” to take new steps if needed."

In other words, my friends, the Fed is prepared to to muddle and muck about however it pleases from week to month, pretty much indefinitely.  The Fed will use no systematic procedure or process, since the Fed has no definite ideas that it can explain and defend publicly.  That's why the Fed's activities are conducted in secrecy, obscurity, and mystery.  Just too complicated for us ordinary folk to understand, you know.

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