Federal Reserve Bank of St. Louis President James Bullard said he’s predicting the central bank’s first interest-rate rise will happen in the first quarter of next year as unemployment falls and inflation quickens.
Today’s $13 billion auction of 10-year Treasury Inflation Protected Securities attracted the highest demand in two years, including record purchases from a category of bidders that includes foreign central banks.
Most of us in the West know, or should know, that all things being equal it is best for the Federal Reserve not to intervene in the economy. We prefer market forces to work. But of course all things are not equal.
By December, the most recent month for which statistics are available, the U.S. dollar Fiat Money Quantity (FMQ) had grown to $12.48 trillion. This is $5.05 trillion more than if it had grown in line with the established average monthly growth rate from 1960 to the month before the Lehman Crisis.
The International Monetary Fund raised its forecast for global growth this year as expansions in the U.S. and U.K. accelerate, and urged advanced economies to maintain monetary accommodation to strengthen the recovery.