{"id":6354,"date":"2012-12-04T15:29:42","date_gmt":"2012-12-04T20:29:42","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=6354"},"modified":"2012-12-04T15:29:42","modified_gmt":"2012-12-04T20:29:42","slug":"fed-set-to-unveil-extra-asset-purchases-ft-com","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/04\/fed-set-to-unveil-extra-asset-purchases-ft-com\/","title":{"rendered":"Fed set to unveil extra asset purchases &#8211; FT.com"},"content":{"rendered":"<p>Robin Harding at FT writes:<\/p>\n<blockquote style=\"background-color:#ddddff;\"><p>The other issue on the agenda is replacing the FOMC\u2019s current forecast that rates will stay low until mid-2015 with a set of preconditions for the economy to reach before it considers raising rates. \u201cI now think a threshold of 6.5 per cent for the unemployment rate and an inflation safeguard of 2.5 per cent\u2009.\u2009.\u2009.\u2009would be appropriate,\u201d said Charles Evans, president of the Chicago Fed&#8230;..<\/p><\/blockquote>\n<p>The problem is that both of these thresholds are moving targets:<\/p>\n<ul>\n<li>Unemployment is based on surveys and only includes those who have actively sought a job in recent weeks. It fluctuates with the participation rate.<\/li>\n<li>Inflation is also subjective, dependent on the basket of goods measured and estimates of housing inflation that are subject to manipulation.<\/li>\n<\/ul>\n<p>Targeting <a href=\"http:\/\/goldstocksforex.com\/?s=NGDP\" title=\"Targeting Nominal GDP Growth\" target=\"_blank\">nominal GDP growth<\/a> would be far more accurate.<\/p>\n<p>via <a href='http:\/\/www.ft.com\/intl\/cms\/s\/0\/7d8b91fe-3e30-11e2-829d-00144feabdc0.html#axzz2E1f0S9aE'>Fed set to unveil extra asset purchases &#8211; FT.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Robin Harding at FT writes: The other issue on the agenda is replacing the FOMC\u2019s current forecast that rates will stay low until mid-2015 with a set of preconditions for the economy to reach before it considers raising rates. \u201cI now think a threshold of 6.5 per cent for the unemployment rate and an inflation &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2012\/12\/04\/fed-set-to-unveil-extra-asset-purchases-ft-com\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Fed set to unveil extra asset purchases &#8211; FT.com&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31,34],"tags":[1352,1828,2469,3531],"class_list":["post-6354","post","type-post","status-publish","format-standard","hentry","category-the-fed-banks-interest-rates","category-us-canada-countries-regions","tag-fed","tag-inflation","tag-ngdp-growth","tag-unemployment"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fed set to unveil extra asset purchases - FT.com - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fed set to unveil extra asset purchases - FT.com - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Robin Harding at FT writes: The other issue on the agenda is replacing the FOMC\u2019s current forecast that rates will stay low until mid-2015 with a set of preconditions for the economy to reach before it considers raising rates. \u201cI now think a threshold of 6.5 per cent for the unemployment rate and an inflation &hellip; 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He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients. Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter. Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit. 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Oil and gas prices are two of the primary causes, with CPI Energy climbing 41.5% year-on-year. This feeds through into Food CPI, up 10.0%. CPI Shelter is\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"CPI","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-14-cpi.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-14-cpi.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-14-cpi.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-07-14-cpi.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":42365,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/06\/01\/no-free-lunches-with-a-tight-labor-market\/","url_meta":{"origin":6354,"position":2},"title":"No free lunches with a tight labor market","author":"Colin Twiggs","date":"June 1, 2023","format":false,"excerpt":"US job openings for April ticked up to 10.1 million, from 9.7 million in March. The gap above unemployment also widened -- by half a million, from 3.9 million in March to 4.4 million in April. Unemployment (3.4%) is at the lowest level in seventy years. The tight labor market\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Job Openings & Unemployment","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-05-31-jolts-u3.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-05-31-jolts-u3.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-05-31-jolts-u3.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":37249,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/09\/12\/fed-higher-for-longer\/","url_meta":{"origin":6354,"position":3},"title":"What Fed &#8220;higher for longer&#8221; means","author":"Colin Twiggs","date":"September 12, 2022","format":false,"excerpt":"Former New York Fed President Bill Dudley says the Fed will need to hold rates \"higher for longer\" in order to curb inflation. He expects rates will be \u201c4% or higher\u201d in the first half of 2023. (Bloomberg) A 75 basis-point hike is on the cards for the next FOMC\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Nymex Light Crude","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-09-12-crude.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-09-12-crude.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-09-12-crude.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":38318,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/10\/25\/the-fed-inflation-lessons-from-the-past\/","url_meta":{"origin":6354,"position":4},"title":"The Fed &#038; Inflation: Lessons from the past","author":"Colin Twiggs","date":"October 25, 2022","format":false,"excerpt":"In 1974, the Fed, under Chairman Arthur Burns, succumbed to political pressure from the White House and cut rates while inflation was still strong. The FOMC had hiked rates to contain a burst in inflation from the 1973 Middle East oil embargo but then cut too early -- from 12.9%\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"Fed Funds Rate & CPI","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-10-24-cpi-ffr-70s.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-10-24-cpi-ffr-70s.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-10-24-cpi-ffr-70s.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":31033,"url":"https:\/\/thepatientinvestor.com\/index.php\/2022\/02\/18\/inflationary-pressures-to-continue\/","url_meta":{"origin":6354,"position":5},"title":"Fed monetary policy and the stagflation threat","author":"Colin Twiggs","date":"February 18, 2022","format":false,"excerpt":"January retail sales (excluding motor vehicles and parts) are still way above trend -- at $517 billion compared to $445 billion -- indicating continued upward pressure on consumer prices. Despite buoyant retail sales, consumer sentiment has fallen to recession levels. The University of Michigan consumer sentiment survey fell below 70\u2026","rel":"","context":"In &quot;Deficit Spending &amp; Employment&quot;","block_context":{"text":"Deficit Spending &amp; Employment","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/deficit-spending-employment\/"},"img":{"alt_text":"Retail Sales","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-02-18-retail.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-02-18-retail.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-02-18-retail.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2022\/2022-02-18-retail.png?resize=700%2C400&ssl=1 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=6354"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/6354\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=6354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=6354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=6354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}