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No, not really. They have been saying that they are scaling back with eye toward ending it, but not before the unemployment rate is under control. For example
by stonemetal 12y ago
No, not really. They have been saying that they are scaling back with eye toward ending it, but not before the unemployment rate is under control. For example this is from July 2013.
Fed Chief Ben Bernanke announced in late May that the central bank intends to start slowing down the pace of its purchase “later this year” if the economy continues to improve. He said the purchases could conclude by mid-2014 if the unemployment rate is close to 7%.
http://www.marketwatch.com/story/fed-gives-no-hint-on-qe-tapering-timeline-2013-07-31 http://www.marketwatch.com/story/fed-gives-no-hint-on-qe-tap...
- genwin 12y agoThere's a feedback loop to consider. Conclude the purchases when the unemployment rate is close to 7%, then the unemployment rate hits 9% because the nearly-free money tap is off.