More from St. Louis Fed's Jim Bullard: He suggests a tapering of the Fed's QE as soon as...

More from St. Louis Fed's Jim Bullard: He suggests a tapering of the Fed's QE as soon as possible - perhaps trimming bond purchases by $15B/month for every 0.1% drop in the UE rate. Just when we thought the Fed couldn't think of new methods of micromanagement of this vast economy. (presentation) (speech summary)

Comments (14)
  • Macro Investor
    , contributor
    Comments (8975) | Send Message
    Someone needs to teach Bullard some math. That means QE stops when UE is at 7.2%. The target is 6.5%.
    14 Feb 2013, 03:34 PM Reply Like
  • Michael Parmar
    , contributor
    Comments (245) | Send Message
    6.5% Unemployment rates is linked to interest rates not QE.


    And I had said the thinking is to taper QE.

    15 Feb 2013, 01:40 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8975) | Send Message
    Michael, you are wrong. The QE will continue till unemployment is at 6.5% or below. You always do a full course of antibiotics. You do not lowr the dosage when the symptoms imrove just a notch. That's just bad medicine.
    15 Feb 2013, 08:49 AM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
    Well that is why gold is down


    I think they should stop it all right now
    14 Feb 2013, 03:39 PM Reply Like
    , contributor
    Comments (10765) | Send Message
    What makes Bullard think that QE either helps or hurts unemployment?
    14 Feb 2013, 03:50 PM Reply Like
  • winningtrader
    , contributor
    Comments (2459) | Send Message
    This is just a part of the good cop bad cop strategy. He doesn't mean anything ... just likes to make some noise.
    14 Feb 2013, 04:37 PM Reply Like
  • jhooper
    , contributor
    Comments (7196) | Send Message
    This feels like jawboning to keep commodity prices down (like gold).
    14 Feb 2013, 04:40 PM Reply Like
  • mickmars
    , contributor
    Comments (1312) | Send Message
    "Tapering off QE"... that's funny stuff.


    Remember when they used to talk about raising short term rates a couple of years ago? Yeah, that joke got old.
    14 Feb 2013, 04:48 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    The drop in the UE rate has been inconsistent with the low GDP gains. Participation rate has been steadily declining. We have structural problems, not demand problems. Kill the QE, and fix the structural problems. Start soon.
    14 Feb 2013, 06:19 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    "The lesson from QE2 is that inflation and inflation expectations did trend higher."


    Gotta love this one though:


    "The Fed’s balance sheet relative to GDP is not as large as some other key central banks."


    And this is the punchline:


    "when interest rates rise, asset values will fall, possibly complicating monetary policy decisions."
    14 Feb 2013, 06:23 PM Reply Like
  • rambler1
    , contributor
    Comments (851) | Send Message
    This fed administration should end up in the same retirement home as Greenspan belongs in. Thanks fella's it's been some decade +.
    14 Feb 2013, 07:52 PM Reply Like
  • Interesting Times
    , contributor
    Comments (14443) | Send Message
    Just keep on buying physical!!! They are all running around like loose rats now, making no sense whatsoever...


    Comical!! The end game for the stock market is upon us !
    14 Feb 2013, 08:27 PM Reply Like
  • divinecomedy
    , contributor
    Comments (465) | Send Message
    I wonder what's so magical about 6.5%. Why is it ok to buy until UE reaches that number, why not do it till it's 5.5% or some other number? Also will UE creep up again if interest rate starts going up? If the Fed claims that QE helps keep down unemployment does that mean we'll need infinite QE?


    Too much thinking there, just buy!!!
    15 Feb 2013, 04:31 AM Reply Like
  • Macro Investor
    , contributor
    Comments (8975) | Send Message
    Read up on NAIRU and then you will understand. 6.5% is the UE rate at which inflation is still supposed to be tame. Anything below that and inflation rises.
    15 Feb 2013, 08:50 AM Reply Like
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