The Federal Reserve’s open market committee meeting is taking place today and tomorrow. Central to their discussion are the two words “considerable time.” Have you ever heard something so nonsensical? What gives?
It all started several months ago when Janet Yellen said these words mean six months. So, now, if the Fed drops the words considerable time from its press release tomorrow this is assumed to be code that they will begin raising the federal funds rate in exactly six months. If you recall, the federal funds rate has been near zero for the last six years.
Tomorrow we’ll discover if the era of zero interest rate policy is over. We watch intently for the market’s reaction and secondary convulsions. Naturally, here at the Economic Prism we are eager for the ZIRP era to be over…it never should’ve started to begin with.
In fact, we find the Federal Reserve, and their cheap money policies, to cause more economic harm than good. For one thing, they’ve led us to the place where (Read More....)
. . . → Read More: What to Buy as the Great Unraveling Gets Underway