Fed's Plosser Happy With Higher Rates, Want's QE3 to End Now; Gold Slumps (GLD)
Tweet
Share
E-mail
Philadelphia Fed President Charles Plosser commented today following nonfarm jobs numbers that government spending cuts haven't been "as damaging" so far as some have expected. He called on the Fed to stop its bond buying as soon as possible.
In an interview with Reuters, Plosser noted that he was comfortable with rising interest rates as the market girds for an earlier exit to QE3 than the Fed's plan for a late-2014 stoppage. He said, "It shows that the fears of the sequester (spending cuts) and the layoffs, while they may be there, have not been as damaging yet to overall employment as some people had feared."
Despite Plosser's aversion to Fed actions, the vast majority of the 19 policy-makers in the Fed support open market operations which total $85 billion per month.
Fed chairman Ben Bernanke recently commented that the bank could taper operations should markets continue weathering some $85 billion in government spending cuts and higher tax rates.
Plosser would regain a vote on the Fed's policy committee next year.
May nonfarom payrolls grew 175,000, versus consensus estimates calling for additions of 163,000 jobs. For more on the numbers, click here.
In metals, gold is seeing a slide today as the improved results hint that the Fed might ease bond purchases. Gold contracts for August are down $34.7 to $1,381.1 per ounce on the Comex. The Fed easing QE3 would lead to a stronger dollar, making gold contracts more expensive for buyers with outside currencies.
Lower on the session are SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), and iShares Silver Trust (NYSE: SLV) ETFs, among others.
In an interview with Reuters, Plosser noted that he was comfortable with rising interest rates as the market girds for an earlier exit to QE3 than the Fed's plan for a late-2014 stoppage. He said, "It shows that the fears of the sequester (spending cuts) and the layoffs, while they may be there, have not been as damaging yet to overall employment as some people had feared."
Despite Plosser's aversion to Fed actions, the vast majority of the 19 policy-makers in the Fed support open market operations which total $85 billion per month.
Fed chairman Ben Bernanke recently commented that the bank could taper operations should markets continue weathering some $85 billion in government spending cuts and higher tax rates.
Plosser would regain a vote on the Fed's policy committee next year.
May nonfarom payrolls grew 175,000, versus consensus estimates calling for additions of 163,000 jobs. For more on the numbers, click here.
In metals, gold is seeing a slide today as the improved results hint that the Fed might ease bond purchases. Gold contracts for August are down $34.7 to $1,381.1 per ounce on the Comex. The Fed easing QE3 would lead to a stronger dollar, making gold contracts more expensive for buyers with outside currencies.
Lower on the session are SPDR Gold Shares (NYSE: GLD), iShares Gold Trust (NYSE: IAU), and iShares Silver Trust (NYSE: SLV) ETFs, among others.
Create E-mail Alert Related Categories
ETFs, Fed, Insiders' BlogRelated Entities
Charles Plosser, Ben S. BernankeSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
