In fact, I would push for a neutral Fed funds rate in the 1-2% area, bu 0.25% is a start.
And I bet they do. Time to get off zero.
Absolutely NO QE4. FED has already leveraged its balance sheet to scary levels, beyond that of other CBs apart form the Japanese, but the Japanese can do that (up to a point) because their debt is internally financed. A debtor nation like the U.S. cannot without calling into question certain things, like the reserve currency primacy, where cracks are appearing.
That would be mean. The big bully with hundreds of billions for content. Wahhhhhhhhhh!
Agree--energetic new activist leadership needed. Sacca & Icahn would be great!
Marenkov, are there any figures available for the net positions in USTs for the Japanese & Europeans? They hold far more than China.
Cramer today said that China is indeed selling hundreds of billions of US Treasuries. But this should depress the dollar (it did yesterday, but not today). But the Chinese, Japanese, European sure popped rates--nice move in TBT. Apparently the chinese yuan is so weak that the Chinese concluded that selling the USTs wouldn't hurt the exchange rate that much.
Margin calls on stock positions could have led to some bond selling (by wealthy individuals & investment firms) in Germany to raise cash. "When you can't sell what you want you sell what you can".