Users: simpletechnicals: Bond Market Liberates Fed - WSJ.com
Bond Market Liberates Fed - WSJ.com
inflation expectations are low. one of the three legs needed for the Fed to print money.
With the euro-zone crisis back in high gear, the bond market is making some room for the Fed.
As measured by Treasury bonds, inflation expectations are falling amid heightened concerns that the discord in Europe will threaten U.S. growth. Some observers say that the lowered outlook for inflation gives the Federal Reserve more leeway to stimulate the economy, possibly through another round of quantitative easing. In "QE," the Fed pumps money into the financial system through asset purchases.
Such programs have made a big mark on financial markets since the financial crisis, helping to set off rallies in risky assets ...
With the euro-zone crisis back in high gear, the bond market is making some room for the Fed.
As measured by Treasury bonds, inflation expectations are falling amid heightened concerns that the discord in Europe will threaten U.S. growth. Some observers say that the lowered outlook for inflation gives the Federal Reserve more leeway to stimulate the economy, possibly through another round of quantitative easing. In "QE," the Fed pumps money into the financial system through asset purchases.
Such programs have made a big mark on financial markets since the financial crisis, helping to set off rallies in risky assets ...
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