From this\u00a0commentary\u00a0by Liam Halligan at the U.K. Telegraph comes a good summary of what the Federal Reserve faces in the months ahead as they restart the \u201ctaper talk\u201d that ended so badly over the summer while a new round of debate begins in Washington over the nation\u2019s budget woes and elected officials on the Senate Banking Committee prepare their questions for Fed Chair nominee Janet Yellen.<\/p>\n
In its September statement, the Fed had said that \u201cthe tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labour market\u201d. In the October minutes, that sentence was gone \u2013 causing some to argue that tapering is now more likely, because the economy is improving.<\/p>\n
Yet, the only reason \u201cthat tightening of financial conditions\u201d has gone is because, since early September, when it lost its nerve, the US central bank has stopped talking about tapering. This illustrates the Fed\u2019s Catch-22. If Bernanke starts preparing the world for tapering again, yields will start to spiral, choking off recovery and robbing the Fed of its resolve to taper. So US policymakers are caught in a trap \u2013 a seemingly inescapable dilemma that stems directly from the massive scale of QE.<\/p>\n
These issues will come to a head, and in full public gaze, during Congressional hearings into the nomination of Janet Yellen as Bernanke\u2019s replacement.<\/p><\/blockquote>\n
The title \u201cThe Fed is locked in a QE prison of its own making\u201d is pretty good too.<\/p>\n","protected":false},"excerpt":{"rendered":"
From this\u00a0commentary\u00a0by Liam Halligan at the U.K. Telegraph comes a good summary of what the Federal Reserve faces in the months ahead as they restart the \u201ctaper talk\u201d that ended so badly over the summer while a new round of debate begins in Washington over the nation\u2019s budget woes and… Continue Reading Making the Unconventional Conventional<\/span><\/i><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\nMaking the Unconventional Conventional - The Mess That Greenspan Made<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/timiacono.com\/index.php\/2013\/11\/04\/making-the-unconventional-conventional\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Making the Unconventional Conventional - The Mess That Greenspan Made\" \/>\n<meta property=\"og:description\" content=\"From this\u00a0commentary\u00a0by Liam Halligan at the U.K. Telegraph comes a good summary of what the Federal Reserve faces in the months ahead as they restart the \u201ctaper talk\u201d that ended so badly over the summer while a new round of debate begins in Washington over the nation\u2019s budget woes and… Continue Reading Making the Unconventional Conventional\" \/>\n<meta property=\"og:url\" content=\"https:\/\/timiacono.com\/index.php\/2013\/11\/04\/making-the-unconventional-conventional\/\" \/>\n<meta property=\"og:site_name\" content=\"The Mess That Greenspan Made\" \/>\n<meta property=\"article:published_time\" content=\"2013-11-04T16:25:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-16T15:26:00+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\">\n\t<meta name=\"twitter:data1\" content=\"1 minute\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/timiacono.com\/#website\",\"url\":\"https:\/\/timiacono.com\/\",\"name\":\"The Mess That Greenspan Made\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/timiacono.com\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/timiacono.com\/index.php\/2013\/11\/04\/making-the-unconventional-conventional\/#webpage\",\"url\":\"https:\/\/timiacono.com\/index.php\/2013\/11\/04\/making-the-unconventional-conventional\/\",\"name\":\"Making the Unconventional Conventional - The Mess That Greenspan Made\",\"isPartOf\":{\"@id\":\"https:\/\/timiacono.com\/#website\"},\"datePublished\":\"2013-11-04T16:25:16+00:00\",\"dateModified\":\"2019-06-16T15:26:00+00:00\",\"author\":{\"@id\":\"https:\/\/timiacono.com\/#\/schema\/person\/a06ca3e96a3bd4687b6cf4059cc533c9\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/timiacono.com\/index.php\/2013\/11\/04\/making-the-unconventional-conventional\/\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/timiacono.com\/#\/schema\/person\/a06ca3e96a3bd4687b6cf4059cc533c9\",\"name\":\"timiacono\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/timiacono.com\/#personlogo\",\"inLanguage\":\"en-GB\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/643084f9dd2199caa1626e7fc69324fb?s=96&d=mm&r=g\",\"caption\":\"timiacono\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","_links":{"self":[{"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/posts\/145"}],"collection":[{"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/comments?post=145"}],"version-history":[{"count":1,"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/posts\/145\/revisions"}],"predecessor-version":[{"id":146,"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/posts\/145\/revisions\/146"}],"wp:attachment":[{"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/media?parent=145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/categories?post=145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/timiacono.com\/index.php\/wp-json\/wp\/v2\/tags?post=145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}