What do you think will happen first, the Fed raising rates or more QE? Either way it has to be significant, let's say at least 2% for rates and 50 billion a month for QE.
My money is on a resumption of QE.
I think they'll want to gauge the damage they've done. It's all about the velocity, I think. I don't think they want more QE, but if things pick up too fast, they won't want to spook anyone by raising rates so fast. QE is easy for them.
"And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat
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If the Dow keeps falling they're going to have to do more QE.
QE is scheduled to end in a couple weeks. Next Fed meeting is October 28th where they will announce the end of their security purchases. They will probably continue to roll over the ones they have into new replacement ones as they mature. They have said they don't expect to raise interest rates until sometime next year at the earliest.
Last edited by Zippyjuan; 10-13-2014 at 03:47 PM.
LOL
Who knows ? They will roll that $#@! over forever , rates are going nowhere . Avg guy has lost all gains in his 401K this calendar yr in the past four weeks , most likely.All very Rosy .
More QE. No doubt about it.
Neither choice reflects reality. Rates have been falling while qe is scaled down.
Did you read the question? What do YOU think is going to happen first? More QE or higher rates?Originally Posted by Zippyjuan
If the Feds actually follow through next year with the rising of interest rates, they will quickly retract and go back to QE. That assumes of course that they won't continue QE after Oct 28th. To answer the OP's question QE BABY!!!!
Did you read my responce? QE ends this month. Higher interest rates not likely until next year. Which comes sooner? This month or next year?
Fed can't raise rates. Period.
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- Diogenes of SinopeIt is not that I am mad, it is only that my head is different from yours.
I asked you what YOU think is going to happen and you told me what the FEDERAL RESERVE said they think is going to happen.
Yup. That's why I said it has to be significant. They might raise rates to .25 or .5 before they reverse course. They'll never get it up to something like 2%. At least not until disaster strikes and prices start running out of control. At that point they won't care if we lapse into a depression because the inflation will be so bad.
Yep. The added costs of a higher interest rate would crush the economy
However, continued QE risks hyper-inflating the dollar.
The Fed is caught between a rock and a hard place.
My conspiracy theory: Energy prices are dropping to spur the world economy which they hope to spark a fire somewhere. China? US? EU? (shrug).
The Creature from Jekyll Island:
We're being governed ruled by a geriatric Alzheimer patient/puppet whose strings are being pulled by an elitist oligarchy who believe they can manage the world... imagine the utter maniacal, sociopathic hubris!
I tend to agree , nothing significant .
Zerohedge had a conspiracy theory that Saudi Arabia was selling oil cheap to try to put pressure on Russia. As a return favor to us for intervening in Syria (I think?).
I doubt that oil will stay this low for very long.
http://finance.yahoo.com/news/oil-pr...093534986.html
Ah, another weapon against Russia.
The Creature from Jekyll Island:
We're being governed ruled by a geriatric Alzheimer patient/puppet whose strings are being pulled by an elitist oligarchy who believe they can manage the world... imagine the utter maniacal, sociopathic hubris!
Still time to make your bets!
And make sure you read Zippy's post for comic relief!
Bump.
June is coming up soon. Remember that the vast majority of "economic experts" predicted a rate hike by June. Let's see if they're right.
I would bet a silver dime against it.Just my guess.
I don't recall anybody saying it would occur in June but that it could happen as early as June. Most said towards the second half of this year if the economy continues to improve.
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