In a recent interview, Federal Reserve Bank\u00e2\u20ac\u2122s former Chief Economist, David Stockton shared an interesting perspective in regards to the U.S. economy.<\/p>\n
The Fed presently purchases $85 billion in bonds every month and thereby injects currency into the economy. Stockton looks for the Fed to start drawing down its monetary stimulus program (whatever the current iteration of QE we are in) later this year either in September or December. <\/p>\n
The furious bond buying aided the U.S. in reducing interest rates to a near decade low and although the rate percentages have grown in response to the idea of Fed tapering, Stockton is convinced rates will climb higher yet.<\/p>\n
\u00e2\u20ac\u0153I wouldn\u00e2\u20ac\u2122t expect necessarily for it to be very sharp,\u00e2\u20ac\u009d remarked Stockton. \u00e2\u20ac\u0153If the Fed is good at its job of communicating, it advances intentions. But I would expect a bumpy ride here for the second half of the year.\u00e2\u20ac\u009d<\/p>\n