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Priced in. Stocks and bonds see no bounce from the uber-dovishness of Minneapolis Fed chief...

Priced in. Stocks and bonds see no bounce from the uber-dovishness of Minneapolis Fed chief Kocherlakota. In an unusual move, the former hawk, but now a dove with near-religious zeal, issues a statement calling on the FOMC to say it will continue with QE until the unemployment rate falls to at least 7% as long as inflation remains below 2.5%. Additionally, ZIRP should remain in place until unemployment falls below 5.5% (again assuming inflation remains contained).
Comments (6)
  • wapiti
    , contributor
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    VooDoo economic policy only works for so long
    24 Jun 2013, 12:22 PM Reply Like
  • Nolesince87
    , contributor
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    what's economic policy got to do with monetary policy? Fed doesn't deal in the former, only the latter.
    24 Jun 2013, 12:32 PM Reply Like
  • wapiti
    , contributor
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    All connected. OZ at work
    24 Jun 2013, 12:39 PM Reply Like
  • holydawn
    , contributor
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    guess someone wanted some cheap shares before market goes up again.
    24 Jun 2013, 01:03 PM Reply Like
  • minecanary
    , contributor
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    I think things were just turning a little too Japanese for the Fed to weather. Kocherlakota recently realized that when interest rates tick up, the debt becomes unmanageable....so set some ZIRP benchmarks that will never be reached and keep printing.
    24 Jun 2013, 02:57 PM Reply Like
  • OverSouled
    , contributor
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    There is something to be said for a clear statement of intent. Bernanke's recent statements have had a Greenspanish (okay, I don't like that adjective either) riddle-me-this quality. At least this guy lays it on the line. If the Fed governors could manage to give a statement as clear as this FRB president it would stabilize the stock market, T-bills and mortgage rates, which would benefit the economy. Voodoo is what's happening now, people dumping stocks and bonds based on trying to read the ifs, ands and buts of wavering board members.
    24 Jun 2013, 03:08 PM Reply Like
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