Markets Throw Fed a Curveball

Wall Street Journal, Monday, November 22, 2010


Criticism Hinders Fed’s Plan

Doubts About Quanitative Easing Have Spurred Treasury Yields Higher

Markets Throw Fed a Curveball (graph shown)

“Criticism of the Federal Reserve’s  latest bond-buying program… is muting the plan’s potential benefits for the economy.

These doubts have contributed to an increase in yields on  U.S. Treasury bonds since the Fed announced the program on Nov. 3, they say.”

“The criticism ‘has raised questions about the Fed’s ability and resolve to control the yield curve,” …

Curveball” is a baseball term for a pitch.  A curveball is often effective when it is unexpected and cause the batter to miss the ball.  See for a further explanation.  



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