Tuesday, July 14, 2015

The Federal Reserve 'Normalization' Plan

The Federal Reserve is very likely to raise interest rates this year, however, their long-term plan has no chance of being executed.

Below, Vice President and Economist Stephen Williamson of the St. Louis Fed discusses the intended steps outlined by the Federal Open Market Committee to return policy to "normal." NOT GOING TO HAPPEN (Although "normal" itself is pretty bad.)



  1. They're propping up an enormous, 70-year debt bubble. Peter Schiff said it would be a trick like removing the table and keeping the dishes suspended in mid-air.

  2. Yeah; they're going to sell $4Trillion of reserves in what 7 years? That is $500Billion/year.

    That won't affect the "market?" Such as it is. The HFT/RoboTraders ....

  3. "return the balance sheet to near-zero reserves" my goodness that will not take 7 years! try ... 20, 30? If they're serious, get ready!