Fed Statement Commentary

By Peter Schiff – Re-Blogged From Gold Eagle

While some may have been confused by Fed Chairman Powell’s circular statements in yesterday’s press conference, the takeaway should be abundantly clear: the period of Fed tightening, is over. The Fed will now hold steady on interest rates, and when they move again, they are more likely to lower rates than to raise them. And while the Fed’s program of balance sheet reductions is technically still underway, Powell made it clear that the program is no longer on “automatic pilot” and that the $50 billion per month of bond sales will likely diminish, and ultimately, conclude much earlier than anyone had predicted just a few weeks ago.

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Awareness Of Fed Credibility Problems Going Mainstream

By Cllint Siegner – Re-Blogged From http://www.Gold-Eagle.com

The nation’s pre-eminent central planners just held their annual gathering at an exclusive resort just outside Jackson Hole, Wyoming. They discussed how to interfere even more deeply in markets. In a speech entitled “The Federal Reserve’s Monetary Policy Toolkit: Past, Present and Future,” Fed chair Janet Yellen outlined why zero interest rate policy (ZIRP), purchases of toxic mortgage securities and monetization of Treasury debt just aren’t adequate. Officials must add negative interest rates (NIRP) and purchases of even more sketchy assets to their “toolkit.”

Yellen has spent more than a year floating the idea of negative rates. Therefore, it is no surprise she is hustling the ludicrous policy once again. In fact, very little of what she said Friday is new. It was the usual mess of contradictions.

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