Equity and Treasury markets reacted violently to the May suggestion by Federal Reserve Board Chairman Ben Bernanke that the Fed would begin tapering its assets purchases before the end of the year.
I recently read a Chicago Tribune column by Victor Hanson where he criticized President Obama basically for hypocrisy because in 2006 Obama criticized President Bush's deficit spending. No where in the column did it mention the credit crisis.
Concern has been growing among Federal Reserve officials that the Fed’s low interest rate policies are causing excessive risk-taking in search of higher yields, but that doesn’t mean the Fed is about to abandon its employment goals.
Federal Reserve Chairman Ben S. Bernanke said the central bank may decide to hold bonds on its $3.1 trillion balance sheet to maturity as part of a review of its strategy for an exit from record monetary easing.
Gold jumped the most since November as Federal Reserve Chairman Ben S. Bernanke defended the U.S. central bank’s asset purchases, boosting demand for bullion as a hedge against stimulus-fueled inflation.
Federal Reserve Bank of St. Louis President James Bullard said signs of more stability in U.S. fiscal policy, the housing market and the global economy will probably help fuel economic growth in 2013.
The Fed and some large investors are sounding alert on the overheating of the riskier assets as the Fed has been buying $85 billion of bonds each month. More asset inflation is better for gold prices.
The Fed and some large investors are sounding alert on the overheating of the riskier assets as the Fed has been buying $85 billion of bonds each month. More asset inflation is better for gold prices.
The U.S. economy picked up across much of the country last month, boosted by auto and home sales, even as the outlook for unemployment showed few signs of improvement, the Federal Reserve said.
"In the short term, the combination of weaker growth and the run up to the debt ceiling and potential budget sequestration should prove supportive to gold prices," says a note from Goldman Sachs.
