The minutes of the Fed's January meeting today are likely to shed some insight on just what the heck FOMC members were thinking when the central bank pledged to keep rates at zero through 2014, at least.
At the same time the Fed pledged to keep rates low through 2014, the majority of its members -- 11 out of 17 -- predicted the Fed will have hiked before the end of 2014. That's according to the new information on the thinking of the FOMC members, released as part of Ben Bernanke's "transparency" push at the same January meeting.
Why the Fed chose to make a pledge that contradicts the expectations of its members is "a head-scratcher that hasn't been adequately answered," says Jim Bianco, president of Bianco Research, who further notes the majority of economists expect the Fed to hike before the end of 2014.
"I'm hoping the minutes will explain or square that circle how everyone think the funds rate will be hiked before then but theyRead More »from QE3 or No QE3? The Only “Transparency” the Market Cares About