Provided the economy performs as well as Federal Reserve policymakers expect, the Fed will phase out large-scale asset purchases within the next 10 months. That’s a big “if” of course. The Fed has been projecting a stronger recovery each of the last four years, only to see growth average around a tepid 2%.
The problem is not with managed futures, which have posted great returns, even (especially) during stock market meltdowns, but with the financial industry that wraps these otherwise useful products in a high fee wrapper
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 Bank of Chicago President Charles Evans said policy makers must not be passive in the face of high U.S. unemployment, firing back at critics of the Fed’s decision this month to step up record stimulus.