The Fed's Trap
The recent decision by the Fed's to delay any tapering of purchases sent a number of conflicting messages. The Fed's believes the economy is improving, but maybe it isn't. The Fed's said it has clear goals for the economy, but they are moving the goalposts. The bottom line is the Fed's did not taper because they were worried about something. They just didn't tell us what. The Fed's also tacitly admitted that they don't know how to extricate themselves from the QE policy without driving up interest rates. Please join us for this quarterly web cast. We'll take a look at what the Fed's decision really means, and how the long-term outlook for interest rates and the economy will be impacted by this action.
About the Presenter
Dwight Johnston is VP and Chief Economist for the California and Nevada Credit Union Leagues.