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A Tale of Two Feds
by Daily Bell Staff
The Daily Bell
Janet Yellen’s cautious retreat from zero-rate era … With the Federal Reserve’s hiking short-term interest rates by a quarter-percentage point, a cautious Janet Yellen has taken the final step to unwind her crisis-manager predecessor’s extraordinary economic rescue operation. During her almost two years chairing the Federal Reserve Board, Yellen has phased out the two signature stimulus policies enacted under Ben Bernanke: a massive purchase of long-term bonds and mortgage-backed securities, known as quantitative easing; and a move since the Great Recession to hold short-term rates near zero. – CBS Moneywatch
Dominant Social Theme: Cautiously, but effectively, Yellen manages the economy.
Free-Market Analysis: The main meme of the media these days when it comes to the Fed has to do with “successful caution.” Yellen is to be portrayed as a successful commander who leads with an abundance of care.
The idea is she waited until she was absolutely sure of the economy’s gathering force before she hiked. And now that she has, she’s going to continue to be careful.
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Source: http://financialsurvivalnetwork.com/2015/12/a-tale-of-two-feds/?utm_source=rss&utm_medium=rss&utm_campaign=a-tale-of-two-feds
