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Why the Fed’s New Plans Won’t Change a Thing This Year

99 views  2013-06-25 02:57   Tagsinterview  blank  target  color  style 
In an interview on CNBC, John Boehner, Speaker of the United States House of Representatives, accused Federal Reserve chairman Ben Bernanke of generating the market sell-off.
In fact, Mr. Boehner actually should’ve thanked Bernanke for the stock market rally that drove the Dow and S&P 500 to record highs. It was only because of the Federal Reserve’s easy monetary policy that stocks were able to climb so rapidly despite a somewhat sluggish economy.

Also Read: NYSE Holidays 2013

And there’s still no definite date to cut the bond stimulus; in order for the stimulus to end, the economy will need to drive higher in its recovery and the unemployment rate will need to fall to seven percent.
It’s not a sure bet that the Federal Reserve’s plan will ever come to fruition. There’s also an assumption by the Federal Reserve that the U.S. economy will ratchet higher.

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