tag:blogger.com,1999:blog-6616959642391988608.post1172858033522643742..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Why the Fed should raise ratesScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6616959642391988608.post-73387885793482075632015-08-05T16:22:12.902-07:002015-08-05T16:22:12.902-07:00Gadzooks...another warning about inflation?
The w...Gadzooks...another warning about inflation?<br /><br />The world has changed... the US economy has changed. Labor unions are dead, whole industries have been rate deregulated such as telecommunications, and transportation. Free trade is the norm. now. The US has global supply lines. Big Labor is dead, big auto is dead, big steel dead, big aluminum is dead. Top marginal tax rates have been cut Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-55546832659117984322015-08-05T13:29:21.795-07:002015-08-05T13:29:21.795-07:00
Excess reserves total about $2.5 trillion. If th...<br /><br />Excess reserves total about $2.5 trillion. If the Fed eschewed raising the rate it pays on reserves, it would be nearly impossible for them to reduce the supply of excess reserves by enough, in the foreseeable future, to create a shortage of reserves. The only practical way to restrain bank lending is by increasing the rate the Fed pays on reserves by enough to make banks content to Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-71142427371035547352015-08-05T11:33:52.412-07:002015-08-05T11:33:52.412-07:00The only problem the FRB has in raising rates is t...The only problem the FRB has in raising rates is their fear the stock market will sell off.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-79535441331773776112015-08-04T21:46:17.910-07:002015-08-04T21:46:17.910-07:00Im not Scott, but I don't think the Fed is try...Im not Scott, but I don't think the Fed is trying to raise overall interest rates quickly. They are trying to make rates less low for now, and they want that to occur in a measured way, commensurate with the world's lessening demand for cash. QE will be reversed as those bonds mature, anyway. Raising Fed Fund rates and increasing rates paid on excess reserves addresses the goal more Johnny Bee Dawghttps://www.blogger.com/profile/06836875640973245734noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-29647193975282844892015-08-04T20:01:26.125-07:002015-08-04T20:01:26.125-07:00Scott, this might be the dumbest question ever, bu...Scott, this might be the dumbest question ever, but... I am going to ask it anyway, and would appreciate any input you have. <br /><br />Instead of raising rates, why doesn't the Fed start by reversing some or all of the QE they did? <br /><br />Again, I think this must be a real dumb question, but thank you.John McCormickhttps://www.blogger.com/profile/16224835291067550046noreply@blogger.com