Started By
Message
locked post

The new federal chair

Posted on 9/16/13 at 3:04 pm
Posted by slutiger5
Parroquias de Florida
Member since May 2007
10646 posts
Posted on 9/16/13 at 3:04 pm
It's said that Janet Yellen wants to bring back the interest rates and end all stimulus prints. Would her nomination cause another massive dive in the market?
This post was edited on 9/16/13 at 3:07 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 9/16/13 at 3:06 pm to
No.
Posted by 90proofprofessional
Member since Mar 2004
24445 posts
Posted on 9/16/13 at 3:08 pm to
quote:

It's said that Janet Yellen wants to bring back the interest rates and end all stimulus prints

wut
Posted by I Love Bama
Alabama
Member since Nov 2007
37715 posts
Posted on 9/16/13 at 3:10 pm to
Really? Why would you think that?
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5600 posts
Posted on 9/16/13 at 3:14 pm to
quote:

It's said that Janet Yellen wants to bring back the interest rates and end all stimulus prints. Would her nomination cause another massive dive in the market?

Not true and no.
Posted by slutiger5
Parroquias de Florida
Member since May 2007
10646 posts
Posted on 9/16/13 at 3:29 pm to
Interest rates for homes going back near 15%. And no longer printing stimulus funds for the government.
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 9/16/13 at 3:53 pm to
quote:

It's said that Janet Yellen wants to bring back the interest rates and end all stimulus prints


Not sure if serious.
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5600 posts
Posted on 9/16/13 at 4:34 pm to
quote:

Interest rates for homes going back near 15%. And no longer printing stimulus funds for the government.

No and no.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 9/16/13 at 5:15 pm to
quote:

Really? Why would you think that?

Because Yellen has spoken about her position on stimulus, tapering and the elusive recovery and I have no reason to think she was lying when she said it.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 9/16/13 at 5:18 pm to
quote:

And no longer printing stimulus funds for the government.
lol....what?
Posted by slutiger5
Parroquias de Florida
Member since May 2007
10646 posts
Posted on 9/16/13 at 5:38 pm to
Every so often a stimulus is put into accounts or the market to establish more trading, right? This happened a couple months ago. I'm not thoroughly educated on economy or the federal reserve. That is why I ask.
This post was edited on 9/16/13 at 5:45 pm
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 9/16/13 at 5:53 pm to
quote:

Every so often a stimulus is put into accounts or the market to establish more trading, right?
No, that's not how it works.

There are some pretty straightforward explanations on how the Fed attempts to stimulate the economy which you can google if you're interested.
Posted by Bengalroar
Member since Aug 2013
887 posts
Posted on 9/16/13 at 6:08 pm to
Janet doesn't read this board, so there is no point in trolling her.
Posted by slutiger5
Parroquias de Florida
Member since May 2007
10646 posts
Posted on 9/16/13 at 6:11 pm to
Will do, long snapper from 5 years ago.
Posted by Turkey_Creek_Tiger
Member since Dec 2012
12343 posts
Posted on 9/16/13 at 7:10 pm to
quote:

It's said that Janet Yellen wants to bring back the interest rates and end all stimulus prints.


I thought she was a Keynesian?
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 9/16/13 at 9:17 pm to
quote:

No, that's not how it works.


Fight the good fight.
Posted by Blakely Bimbo
Member since Dec 2010
1183 posts
Posted on 9/17/13 at 8:12 am to
Janet Yellen is married to economist George Akerlof.

Google "Efficiency Wage Models of the Labor Market".

Yellen is going to promote continuing monetary policy. The FED is likely to taper, but they are not ending the policy and they are certainly not raising the discount rate anytime soon.

Yellen believes that inflation can be tolerated if it boosts employment.
Posted by TigerFanatic99
South Bend, Indiana
Member since Jan 2007
27624 posts
Posted on 9/17/13 at 8:45 am to
quote:

Yellen believes that inflation can be tolerated if it boosts employment


on a macro scale, as long is it's moderate inflation I agree with her. On a "IHaveToFeedMyFamily" scale, that rich bitch can EAD.
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5600 posts
Posted on 9/17/13 at 8:53 am to
quote:

Every so often a stimulus is put into accounts or the market to establish more trading, right? This happened a couple months ago. I'm not thoroughly educated on economy or the federal reserve. That is why I ask.

OK it seems you have a genuine interest in this rather than just spouting stuff so I'll respond.

The Federal Reserve provides what could be considered as 'monetary stimulus'. They will buy or sell securities in the open market to either provide or take away liquidity in the markets depending on the financial conditions at the time. They also do this for normal operational reasons as well with banking repos, etc. but that's a different subject.

Janet Yellen has been Ben Bernanke's vice chairman for a long time. You can think of a Fed governor in the term of 'hawk' or 'dove'. A hawk would mean they support tight monetary policy, less stimulus and higher interest rates. A dove would mean they are more supportive of looser monetary policy, more stimulus and lower interest rates.

Both Larry Summers and Janey Yellen are doves, however Yellen is considered more dovish than Summers as she has usually been more dovish than Bernanke. Bernanke is widely viewed as a dove (Helicopter Ben, etc.) when in reality he is extremely moderate. He makes his choices of monetary policy based on data and market conditions.

Also the idea of providing government with stimulus is not really true at all in a technical sense, however that is a completely different subject all together. You can make an arguement that the Federal Reserve's easing policies have indirectly motivated the government to borrow more which I would partially agree with, but there becomes many operational issues with the Treasury market that are often ignored in that context as well.
This post was edited on 9/17/13 at 8:54 am
Posted by BennyAndTheInkJets
Middle of a layover
Member since Nov 2010
5600 posts
Posted on 9/17/13 at 8:55 am to
quote:

The FED is likely to taper, but they are not ending the policy and they are certainly not raising the discount rate anytime soon

Fed Funds target rate, not the discount rate. The discount rate is irrelevant at this point.
first pageprev pagePage 1 of 2Next pagelast page

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram