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A hawk turns into a dove http://blogs.wsj.com/economics/2010/10/18/feds-lockhart-leaning-in-favor-of-action/

As things currently stands I dont believe the Fed will change the extended period language. Exactly because of that inflation expectations issue, they have been already forced to do QE. I dont think they will go all-in just yet

Looks like the Fed has a new credit standards survey on the Shadow Banks http://www.cnbc.com/id/15840232?video=1615361240&play=1 I have no idea where to find the report. The Fed website doesn't show this

Hilarious, now Bernanke is talking about extending the extended period. Yet a while ago they were all saying how extended period was NOT a time table, how come they want to extend it now. Extending assumes it will go for more TIME. As usual you have to decode Fedspeak

This is verbal QE at work, they didnt even had to print up a dollar

There seems to be going on an interesting boom bust cycle going on right now. Fed signals easing intentions because inflation expectations went down a lot, markets start price in additional QE, commodities rise, dollar falls, inflation expectations rise, Fed feels like a large program is too...

This is why I believe both a gold standard and Friedman's 'lets use a computer who prints a fixed amount of money instead of the Fed' ideas wont work in a modern economy. Velocity is too unpredictable, if there isn't an institution fine tuning the money supply depending on whats is going on with...

It is said sometime that because Japan had a high savings rate it was able to support its deficits but since the US doesnt have(although its going up lately) it might not. I question this view. It not like foreign buyers are pricing Japanese 30y bonds at 6% interest rates but dumb domestic...

This guy makes a really good point. Back in Sep 2008 after LEH failed, the Fed publish forecasts that predicted failure(They would miss their targets for inflation and the UR), yet they did nothing with the Fed funds rate at 2% even paid IOR to prevent the FF from going down. The fomc meeting...

An interesting discussion on monetary policy http://www.econtalk.org/archives/2009/11/sumner_on_monet.html

Some updates from the Value Investing Congress here http://www.marketfolly.com/ Tilson is still short XHB(so am I) and long BP Ackman didnt give stock tips but did a Q&A(Weirdly says the US stock market is cheap, I dont know where he gets his valuation from) Einhorn is short JOE(the stock...

MS Greenlaw: " In that context, it seems likely that the Fed will keep the funds rate near zero until 2012" :p

Fed says on minutes is studying targeting nominal GDP, very surprising since there wasn't any speech of any kind saying this. This makes me suspect some on the FOMC read the Scott Sumner blog(I'm serious, I do know that Fisher reads Tim Duy's blog), as he has been the leading authority that is...

Hatzius, no FF hike till 2015 http://www.zerohedge.com/article/qe2-sealed-next-rate-hike-wont-come-until-2015-says-goldman I believe that from a Taylor rule or Fed mandate perspective he could be right. The thing is, inflation expectations will unanchor at some point as the US fiscal...

"Nothing new here, just another reason why the traditional explanation of the liquidity trap is inconsistent with common sense. You really need to assume that currency injections are temporary. You can’t get a liquidity trap by positing that people don’t want to borrow at zero rates, or...

Here is Scot Sumner debuking the idea of the liquidity trap http://www.themoneyillusion.com/?p=7387 "Can the Fed increase nominal national income when the economy is at the zero bound? If you don’t think so, then you must believe that people behave as follows: Suppose the Fed increased...

You are handpicking data. Check out the 6m and 12m inflation data from the dallas fed http://www.dallasfed.org/data/pce/index.html Disinflation is a reality and the Fed is responding to the rule law that demands than to maintain price stability and full employment

Gross: 2y UST might not have much term premium left http://noir.bloomberg.com/avp/avp.htm?N=video&T=Gross%20Interview%20on%20Quantitative%20Easing,%20Strategy%20&clipSRC=mms://media2.bloomberg.com/cache/v28j0GOwJSbE.asf I agree with this, ever since LEH failed I would look at Fed futures...

Its a matter of monetary growth. M2 growth is too weak and delevering after financial crisis lasts on average 7 years(this hurts M2 growth), the Fed has no choice, they can yap about GDP and employment but the real reason they are doing this is because otherwise the money supply would tank and...

I think Bullard is wrong here. Bernanke wants more stimulus in my view, obviously he is quite a dove, the vice-chair will be Yellen she is also quite dovish, the NY Fed president already had a clear statement he wants more stimulus. With their votes casts and already 1 dissent from Hoenig(and...