Posted on Sep 19, 2017
How much longer this stock-market bull lasts may depend on Fed’s next move
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How much longer can we pump money (Quantitative easing, monetary stimulus) into the economy?
How much longer this stock-market bull lasts may depend on Fed’s next move
Posted from marketwatch.comPosted in these groups: 
EconomyFederal Reserve Board
EconomyFederal Reserve Board
Posted >1 y ago
Responses: 1
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We aren't pumping any more into the economy, there balance sheet shows about 4.7T and the unwind is at a rate of about .25% so far. Not enough to effect the needle. The banks are fine with this cheap money, however your interest rates on cash savings and cash investments (CDs) are funding this Federal largess. On the backs of the elderly and others with savings accounts. When the Fed seriously unwind all that cash, the market will drop, but interest rates on these type accounts will go up.
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SFC (Join to see)
Thanks for the clarification. As you can tell finance isn’t my profession but I know enough for it to bother me. In my mind, it’s right for people with savings to receive that 3% to 5% return that I think of as standard from much of the 60’s through 80’s. It hard for me to imagine banks parting with that money after they have gotten used to keeping it the last almost 10 years of so.
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MCPO Roger Collins
The norm back then was 5.25% on plain old savings accounts and banks gave you gifts for new accounts. During the late 70s-80s, My 401K was getting 14%.
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