Thursday, March 26, 2015

Fed's Bullard: now may be good time to normalize U.S. monetary policy

The Fed certainly recognizes what the public does not - How do central planners, governments working/directing to central bankers, apply stimulus within next economic downturn (continuation of the Great Recession) with rates already near zero? Lowering interest rates, even penalizing savers - a generation of dedicated voters through negative interest rates, haven't and won't motivated people to borrow, spend, and/or invest if disposable income follows rates lower. A steady contraction in borrowing since 2007 (please click), especially in key sectors such as real estate, proves the old saying, you can lead a horse to water, but you can't make him drink, correct.

The Fed, citing economic strength (that they know does not exist), will continue saying now may be a good time to normalize monetary policy, because it recognizes time is running out.

Headline: Fed's Bullard: now may be good time to normalize U.S. monetary policy

(Reuters) - Now may be a good time to start normalizing U.S. monetary policy, Federal Reserve policymaker James Bullard said on Thursday.

In the text of comments delivered to an audience in Frankfurt, St. Louis Fed President Bullard said doing that would direct policy "so that it is set appropriately for an improving economy over the next two years."

He said that the U.S. economy had normalized, adding: "Even with some normalization, monetary policy will remain exceptionally accommodative."



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