Fri, Feb 27, 2015, 7:37 AM EST - U.S. Markets open in 1 hr 53 mins

Recent

% | $
Quotes you view appear here for quick access.

The Walt Disney Company Message Board

  • sushibn sushibn Jan 4, 2013 12:23 PM Flag

    Most FOMC Participants Saw QE3 Ending in 2013

     

    Fed's pump is over folks soon reality is coming Dow drop is next!!!

    Most FOMC Participants Saw QE3 Ending in 2013
    By Joshua Zumbrun & Jeff Kearns - Jan 3, 2013 3:51 PM ET

    Federal Reserve policy makers said they will probably end their $85 billion monthly bond purchases sometime in 2013, with members divided between a mid- or end-of- year finish.

    “A few members expressed the view that ongoing asset purchases would likely be warranted until about the end of 2013” while a few others specified no time frame, according to the record of the Federal Open Market Committee’s Dec. 11-12 gathering released today in Washington. “Several others thought that it would probably be appropriate to slow or stop purchases well before the end of 2013, citing concerns about financial stability or the size of the balance sheet.”

    Enlarge image Most Fed Officials Saw QE3 Purchases Concluding This Year
    Most Fed Officials Saw QE3 Purchases Concluding This Year Most Fed Officials Saw QE3 Purchases Concluding This Year Andrew Harrer/Bloomberg
    The Marriner S. Eccles Federal Reserve building stands in Washington, D.C.

    The Marriner S. Eccles Federal Reserve building stands in Washington, D.C. Photographer: Andrew Harrer/Bloomberg
    Most FOMC Participants See QE3 Buying End in 2013 3:32 Jan. 3 (Bloomberg) -- Federal Reserve policy makers said they will probably end their $85 billion monthly bond purchases sometime in 2013 with members divided between a mid- or end-of-year finish, according to the record of the Federal Open Market Committee’s Dec. 11-12 gathering. Bloomberg's Mark Crumpton and Joseph Brusuelas report on Bloomberg Television's "Bottom Line." (Source: Bloomberg)
    Four years after cutting the main interest rate to near zero, policy makers are expanding their third round of so-called quantitative easing to boost economic growth and cut the jobless rate, now at 7.7 percent. In prior rounds of bond purchases, the central bank bought $2.3 trillion in securities.

    The minutes show a divide among FOMC participants on how long the purchases should last. Participants who provided estimates were “approximately evenly divided” between those who said it would be appropriate to end the purchases around mid-2013 and those who said they should continue beyond that date.

    “They’re willing to do more QE on the premise that the net benefits outweigh the costs,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank AG in New York. “But they’re more willing to entertain the thought that these actions are going to lose a bit of their efficacy.”

    Erased Gains
    U.S. stocks erased gains after the release of the minutes. The Standard & Poor’s 500 Index (SPX) fell 0.4 percent to 1,456.37 at 3:39 p.m. in New York after rising today as much as 0.2 percent. The yield on the 10-year Treasury rose 0.06 percentage point to 1.9 percent, the highest level since May.

    Economic reports today showed the world’s largest economy picked up even as U.S. lawmakers clashed over fiscal policy. The Bloomberg Consumer Comfort Index rose to minus 31.8 in the period ended Dec. 30, its highest since April, from minus 32.1 a week earlier. ADP Research Institute data showed a 215,000 increase in employment, the largest since February.

    At its December meeting, the FOMC announced Treasury purchases of $45 billion a month in addition to $40 billion a month of mortgage-debt purchases begun in September, bringing the total pace of bond buying to $85 billion a month. The FOMC hadn’t set a limit on the program’s size or duration and said last month the purchases will continue “if the outlook for the labor market does not improve substantially.”

    Operation Twist
    The new bond buying follows the expiration at the end of last year of Operation Twist, in which the Fed swapped about $45 billion in short-term Treasuries each month for an equal amount of long-term debt. That kept the total size of the balance sheet unchanged. The new buying will expand the Fed’s total holdings, which are currently $2.91 trillion.

    Officials discussed the possible risks of new bond buying, with “a number” expressing concern the purchases “could complicate the Committee’s efforts to eventually withdraw monetary policy accommodation” by causing inflation expectations to rise, according to the minutes.

    When the time comes to exit from the record accommodation, higher interest rates may mean that the Fed’s “remittances to the Treasury could be significantly affected,” participants said. They also said the FOMC must “continue to #$%$ whether large purchases were having adverse effects on market functioning and financial stability,” according to the minutes.

    Sentiment: Strong Sell

    This topic is deleted.
 
DIS
104.56-1.01(-0.96%)Feb 26 4:00 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Aruba Networks, Inc.
NASDAQThu, Feb 26, 2015 4:00 PM EST
Ensco plc
NYSEThu, Feb 26, 2015 4:02 PM EST