Wrong. The fed wants to keep pumping to make dear leader and the democrats look good. They will stop seconds after republicans take the senate.
Add to that the fact that the Fed only controls short term rates directly. They can have some effect on long term rates, but if the herd of investors gets the whiff of hyperinflation in the air the stampede to high rates will occur very quickly.
Post the whole thing.
They want interest rates low on the national debt despite screwing those who have or HAD bank accounts for retirement.
Yeah, they love to make Dems look good, but at some point the house of cards will go boom.
Why? Retirees and near-retirees with substantial savings would spend that interest, a lot of it locally.
Never believe anything a central banker says. They have been debasing the dollar steadily for over thirty years and now they expect people to believe they give two Sh*ts about printing money. You cannot win a currency war if you stop firing bullets. If they stop or slow bond buying they will come up with an excuse to print and buy something else. Maybe college loan debt. No way they stop while japan is firing away with the yen.
Though it would be like pulling teeth with them, the US Bureau of Engraving and Printing needs to have a third printing office, exclusively for printing registered, non-circulating, high denomination bills.
Typically, this would mean $10k, $100k, $1m, and $10m bills. Maybe even a limited issue of $100m.
The purpose of this would be to “de-virtualize” parts of the economy. To get liquid assets on computer turned into fiat physical assets, to protect them from “virtual meltdowns” of whatever kind.
Lots of things could cause such a meltdown, from solar flares to EMP detonations, to who knows what.
This would have other benefits as well, as it would take some liquidity out of the market.