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Fed Shuffling Off Vs. Quick Exit – Analyst Blog

Source: http://www.zacks.com/stock/news/21579/Fed+Shuffling+Off+Vs.+Quick+Exit++-+Analyst+Blog
 Posted on Monday, June 29th, 2009 | In Market Commentary, Stocks to Watch
Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

The idea that the Federal Reserve may quicken its scaling back of its emergency market lifelines appear to be a bit of a pipedream.

While the Fed recently eliminated a liquidity program for money markets and moderated a minimal number of other facilities, it basically kept its liquidity safety net in place and extended the term of most of its programs, as it remains concerned that present financial strains will continue for a while.

Clearly the Fed’s “exit strategy” will require extra finesse as to not decimate the recovery, or spawn excessive inflation.

Even though interest remains at a near historic low, a trip to any branch of a major institution – such as, but not limited to, Citigroup (C), Bank of America (BAC), JPMorgan (JPM), Wells Fargo (WFC) and US Bancorp (USB) – reveals that interest rates have crept-up by more than 100 bp over the past month, and these institutions also are charging a point or more.

What remains very interesting is that these same institutions are buying newly minted loans from mortgage brokers (typically carrying lower interest rates).

Read the full analyst report on “C”
Read the full analyst report on “BAC”
Read the full analyst report on “JPM”
Read the full analyst report on “WFC”
Read the full analyst report on “USB”
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No Responses to “Fed Shuffling Off Vs. Quick Exit – Analyst Blog”

  1. Fed Shuffling Off Vs. Quick Exit – Analyst Blog Says:
    June 29th, 2009 at 6:21 pm

    [...] News Sources wrote an interesting post today onHere’s a quick excerptThe idea that the Federal Reserve may quicken its scaling back of its emergency market lifelines appear to be a bit of a pipedream. While the Fed recently eliminated a liquidity program for money markets and moderated a minimal number of other facilities, it basically kept its liquidity safety net in place and extended the term of most of its programs, as it remains concerned that present financial strains will continue for a while. Clearly the Fed’s “exit strategy” will require extra fines [...]

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