Posted on 05/01/2013 3:12:21 PM PDT by whitedog57
Washington (AP) — The Federal Reserve on Wednesday stood by its extraordinary efforts to stimulate the economy. And it signaled that it could increase or decrease the pace of bond purchases depending on how the job market and inflation perform.
After concluding a two-day policy meeting, the Fed said in a statement that the job market has shown some improvement in recent months, on balance. But it also notes that unemployment remains high and government budget policies have begun to restrain economic growth.
The Fed maintained its plan to keep short-term interest rates at record lows at least until unemployment falls to 6.5 percent from its current 7.6 percent.
And it said that it will continue to buy $85 billion a month in Treasury bonds and mortgage-backed securities. The bond purchases are intended to keep long-term borrowing costs down and encourage more borrowing and spending.
True, the Fed has kept the Fed Funds Target Rate at 0.25% since January 2009.
Here is today’s US Treasury yield curve versus the curve at the end of 2008. All that Fed effort for a little of 50 basis point decline in the 10 year Treasury yield??
And The Fed’s Balance Sheet keeps growing at $85 billion a month.
Unemployment still has a ways to go to get to 6.5%.
At least The Fed is in good company. Central banks are helping push down global sovereign rates to all-time lows.
But never fear, when the US hits $20 trillion in debt by 2023, the annual cost to service the debt will be close to $900 billion. That is about a quadrupling of debt service!
Pimpage of the four-sentence blogs!
At the current rate of spending it's going to hit $20 trillion before the end of The Won's current term.
As of the end of April this year the official figure according to the Bureau of the Public Debt was already at $16,828,845,497,183.90.
$20 trillion in debt by 2023???
Come on, we’re going to hit it a lot sooner than that.
http://www.usdebtclock.org says it’ll $22.6T by 2017.
TheBenBernank: “No problemo. We’ll print some more”
That is about a quadrupling of debt service!
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Yeah, whatever. Now what’s on the tube tonight? /sarc
You can find the original of this article on zero hedge. Best of all, no blogpimp! :)
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