The Fed is going to taper the tiny taper right down to zero, sending stocks, bonds and gold soaring. When Kerry talked about "unbelievably small", who knew he meant the next Fed move?
Paul Krugman gets results!
This week the Federal Reserve’s Open Market Committee — the group of men and women who set U.S. monetary policy — will be holding its sixth meeting of 2013. At the meeting’s end, the committee is widely expected to announce the so-called “taper” — a slowing of the pace at which it buys long-term assets.
Memo to the Fed: Please don’t do it. True, the arguments for a taper are neither crazy nor stupid, which makes them unusual for current U.S. policy debate. But if you think about the balance of risks, this is a bad time to be doing anything that looks like a tightening of monetary policy.
Summers is over and the doves have the reins (Doves can handle horses? Metaphor Madness!). I think Krugman is right about this, but let me fervently add - I hope he is right.