Wednesday, March 5, 2014

Not expecting any major reductions of Fed accomodation

I don't see any major reduction in accommodation that the Fed is pushing into the system. We are far from tightening; we are still aggressively easing, with $65 billion still going into the system between each FOMC meeting. Yes, that's down from $85 billion, but still, those are massive injections of reserves into the system. 

The Bank of Japan is doing even more than the Fed.