Wil de FED een lange periode met lage rentes?
Dit verhaal over de FED en de politiek van lage rentes die wordt verwacht is een ingesproken column van een eerder geschreven artikel.
The Fed plans to keep interest rates near zero, while monetizing debt, financing zombie companies, and pouring new dollars into the market. But that may not be enough.
Publicatie 19 september
Jerome Powell fielded questions from reporters Wednesday, and he made it clear that the Fed is a long, long way from abandoning its current dovish policy stance. The Fed plans to keep interest rates near zero, while monetizing US debt, financing zombie companies, and pouring new dollars into the market through balance sheet purchases. But even that may not be enough, and the Fed is now hinting that even more fiscal support may be necessary.
Let’s look at some of the details.
When asked about interest rates, Powell replied:
With regard to interest rates, we now indicate that we expect it will be appropriate to maintain the current zero to 0.25% target range for the federal funds rates until labor market conditions have reached levels consistent with the committee’s assessments of maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.
This basically means ultralow rates from now until at least 2023. There’s no surprise there. Following the 2008 financial crisis and Great Recession, the Fed kept the target federal funds rate at 0.25 percent for eighty-three months, before slowly allowing rates to inch upward in 2015.
Over the last five years of that period, the Fed generally maintained that the economy was “strong,” “strengthening,” or generally doing well. The fact that the Fed refused to allow rates to move upward in this period hinted at the true weakness of the economy of that period, however.
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De F.E.D. is de Amerikaanse Centrale Bank