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Wednesday, June 11, 2014

Yellen: Exit Strategy? We don't need no stinking exit strategy!

Fed Prepares to Keep Record Balance Sheet for Years to Come

Bloomberg Jun 11, 2014 6:36 AM ET

Photographer: Andrew Harrer/Bloomberg
Janet Yellen, chair of the U.S. Federal Reserve, walks out after a Financial Stability... 
Federal Reserve officials, concerned that selling bonds from their $4.3 trillion portfolio could crush the U.S. recovery, are preparing to keep their balance sheet close to record levels for years.
Central bankers are stepping back from a three-year-old strategy for an exit from the unprecedented easing they deployed to battle the worst recession since the Great Depression. Minutes of their last meeting in April made no mention of asset sales.

Officials worry that such sales would spark an abrupt increase in long-term interest rates, making it more expensive for consumers to buy goods on credit and companies to invest, according to James Bullard, president of the Federal Reserve Bank of St. Louis.

For those of you keeping score at home, Personal Incomes haven't risen in a few decades, but the cost of living just keeps rising. We as Americans can't seem to dig out of the hole we're in, and then we have the Gov't piling loads of debt on top of us. YIKES! What's a poor boy to do? Well, making certain that a portion of your investments are allocated outside of the dollar, so that you can recover the lost purchasing power of a weak dollar, would be the place to start!

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