Thursday, October 21, 2010

Is Ben gearing for war?

Bullard suggested that the FOMC announce Treasury purchases in “small increments,” similar to the way the Fed typically raises or lowers the short-term federal-funds rate by a quarter percentage point, or 25 basis points.

The St. Louis Fed chief envisions Fed purchases of $100 billion to start, with further Treasurys buys contingent on the evaluation of economy at future FOMC meetings. The FOMC would have the flexibility to pause or increase the Fed’s Treasurys purchases depending on economic conditions, Bullard said.

Last Friday, Federal Reserve Chairman Ben Bernanke said the Fed is ready to provide additional support, “contingent on incoming information about the economic outlook and financial conditions.”
WJS reporting. Sounds like military strategy to me.

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