Wednesday, December 12, 2012
QE IS A SLICE OF __________
Must be nice owning a printing press.
We would really have QE Infinity if The Fed measured inflation and unemployment properly.
Currently the thresholds are holding rates low "at least" until the unemployment rate is below 6 1/2%, and the inflation outlook "between one and two years ahead" is no more than 2 1/2%, as long as inflation expectations remain "well anchored" - this means inflation could increase to 3% or 4% without an increase in rates, as long as expectations remain anchored and the outlook one to two years ahead is at or below 2 1/2%.
We have had ZIRP for 4 years now and counting.
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