reply to post by larphillips
Here's a Reuters link talking about all of this:
TREASURIES-Treasury prices sink after Fed
launches stimulus
The U.S. Treasury Department sold $13 billion of 30-year bonds earlier in the day, in what analysts said was a strong auction.
The auctioning of of 30 year bonds will increase inflation in the USA. I wonder how many more "strong auctions" there will be in the coming weeks on
bonds?
In an additional move that reflects just how concerned they are about the economy, Fed officials said they were unlikely to raise interest rates
from current rock-bottom lows until at least mid-2015, compared with previous guidance of late 2014.
Keeping the interest rates low will also increase inflation.
The FOMC "emphasized that it expects a highly accommodative stance on monetary policy to remain appropriate for a considerable time after the
economic recovery strengthens," Fed Chairman Ben Bernanke said on Thursday after the announcement.
Bernanke is mentioning an accommodative stance on monetary policy after the recovery strengthens, but later in the article the numbers say the
opposite:
The latest figures on U.S. jobless claims and producer prices did not cause much market reaction earlier in the day. The data largely reinforced
the view of low employment growth and inflation.
First-time filings for jobless benefits totaled 382,000 last week, higher than what economists had forecast. The Labor Department blamed the
larger-than-expected weekly increase on Tropical Storm Isaac.
At the same time, the agency said producer prices rose 1.7 percent in August, the biggest monthly increase since June 2009. But the core rate, which
excludes volatile energy and food prices, grew 0.2 percent, in line with estimates.
Things are not looking good for the US dollar! Too bad the FED can't print millions of jobs
