Markets Throw Fed a Curveball

Wall Street Journal, Monday, November 22, 2010

MONEY & INVESTING:

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 http://www.sportsidioms.com for a further explanation.  

Advertisements

Tags:

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: