US Federal Reserve pulls back on stimulus effort
http://www.bbc.co.uk/news/business-25436982
The US Federal Reserve has announced a slowdown in its effort to boost the US economy.
The central bank said it planned to scale back its $85bn (£51.8bn) a month bond buying programme by $10bn a month.
Stimulus of this kind is designed to lower interest rates and boost economic activity
The Fed’s governing committee cited stronger job growth as a reason for the decision to pullback its programme of bond buying.
The announcement followed a two-day meeting in Washington DC.
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‘Symbolic’
US markets cheered the news.
The Dow Jones surged to close up 292.71 points, or 1.84%. Both the Nasdaq and S&P 500 indexes were up over 1% as well.
That is partially because, while significant, the amount of the pullback in bond-buying was slightly less than expected.
“Ultimately this a very small amount - it’s symbolic rather than more substantive,” Steve Wood, chief market strategist at Russell Investments, told the BBC.
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“The takeaway from this is that while the Federal Reserve might be reducing the dosage of the antibiotic, they’re not going to be discharging the patient anytime soon.”
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and when they do, it’ll be straight into the arms of Obamacare.
“US markets cheered the news.”
So what is the deal here?
When the FED says they will not stop pumping money into the market, stocks go up.
When the FED says they will reduce the amount they are pumping into the economy, stocks go up.
I see a problem here. The market is based on a false economy.
There, I said it.
Just like there is NO inflation, according to the media propaganda thugs.
OH REALLY? Don’t these people go to the grocery store?
Oh yea, they have so much money they have someone take care of the little issues like buying food for the rulers.
Price is more, quantities are less. The new retail scam.