Bernanke Resets Fed Policy by Doing Nothing
As it was obvious from the start of the QE : it works for the rich and they will not allow that it stops. And why wouldn't they like it : they are getting money for nothing directly from the printing machines of the FED. This is probably the biggest theft that was organized so far in the history and all in order to have the classes differences (and power) enhanced as much as it is possible
At least one billionaire is saying the same thing in public :
The stock market move to record highs on the Fed's inaction is great for the rich, but the wealth effect of quantitative easing bond purchases will be negative after the exit, he argued. "This is the biggest redistribution of wealth from the middle class and the poor to the rich ever. Who owns assets—the rich, the billionaires."
Druckenmiller: Fed lost the chance for a 'freebie' in not tapering
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Ben S. Bernanke reinforced his standing as the most activist Federal Reserve chairman in history by doing the unexpected: nothing.
The policy-setting Federal Open Market Committee yesterday refrained from reducing the $85 billion pace of its monthly securities buying, sending stocks to record highs and triggering the biggest rally in Treasuries since 2011 as investors repositioned for a more accommodative central bank. Bernanke said the Fed must determine its policies based on “what’s needed for the economy,” even if it surprises markets.
The decision to abstain from tapering bond purchases underscored Bernanke’s willingness to do anything to lower unemployment and pushed back expectations for a tightening of policy, according to Lou Crandall, chief economist at Wrightson ICAP LLC in Jersey City, New Jersey. Bernanke said he was concerned that market interest rates, driven higher by his own suggestion he would scale back so-called quantitative easing, would curb growth.
“The overriding message the Fed wants to send is that it remains completely committed to providing as much support as necessary,” Crandall said. “The Fed’s goal in surprising the market here was to really cement the credibility” of its interest-rate guidance by showing its primary concern is encouraging growth, he said.
Crandall had predicted the Fed would cut its bond buying yesterday, and said he now expects the central bank to do so in December, though it is “far from a done deal.” He said the Fed may continue the program into the third quarter of next year, up from a previous expectation of a mid-2014 end.
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