While the minutes from the April FOMC meeting mentioned that some
members raised the possibility of an increase in the total amount of
asset purchases, one has to wonder what they may be thinking now with
the US$ index lower by almost 6% since the day before the April meeting,
the CRB higher by 12% and the 10 yr bond yield up almost 20 bps. Looking
forward, do they step it up and fight the bond market in order to keep
rates low or do they sit on their hands and let the current plan unfold.
Hopefully at some point (I was hoping a while ago), the Fed will
disabuse themselves of the belief that they constantly have to do
something and of the belief that what they are doing is really
contributing to the long term health of this country. I’m sorry for
repeating myself but Ben and the boys need to just sit on their hands
for a while
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