by Bill McBride on 11/21/2012 08:22:00 PM
Wednesday, November 21, 2012
Happy Thanksgiving to all!
The US markets are closed on Thursday, however there might be some news from the European Union Summit Meeting. CR is always open.
Thanks again to Joe Weisenthal at Business Insider for his nice comments today, and to Paul Krugman for adding even more: All Hail Calculated Risk.
While I'm giving thanks - I'm forever thankful for having the privilege of knowing and sharing this blog with Doris "Tanta" Dungey, thanks to my friend Tom Lawler for all of our data discussions and for allowing me to excerpt from his newsletter, to surferdude808 for all his work on tracking problem banks, and to Ken Cooper for his help with the comments. I'm thankful for all the wonderful people I've met while blogging. And thanks to all the commenters too, and to all the readers!
And on topic, Jon Hilsenrath at the WSJ interviewed San Francisco Fed President John Williams today: Fed's Williams: Fed Not Near Limit on Bond Buying. A short excerpt:
WSJ: Would a reduction in the monthly flow of the Fed's purchases right now be counterproductive?What to do when Twist expires will be a key topic at the December FOMC meeting. It seems likely the $85 billion a month in purchases of mortgages and long-term Treasury securities will continue next year.
WILLIAMS: I would say that interest rates and financial conditions today in the market are based on the expectation that we will continue these policies into next year. That would include long-term Treasury purchases. A decision not to continue buying long-term Tereasurys when Twist expires I think that would be a surprise to markets and that would be counterproductive. In my view it would push long-term rates up and cause financial conditions to be a little less supportive of growth. That's my interpretation of market expectations today.