Mo' Money Mo' Money Mo' Money

Wall Street is still trying to read the tea leaves, bird entrails, Flock of Seagulls hair, or whatever behind future Fed policy:

The phrase that investors will be alert for is “considerable time.” The presence or absence of those two words is viewed as key to the Fed’s timetable for a change in its key short-term rate. The Fed has kept that rate at a record low since December 2008.

Since March, the Fed has said it expects to keep this rate near zero for a “considerable time” after it stops buying Treasurys and mortgage bonds. The bond purchases have been intended to keep long-term rates down to support the economy.

But the purchases are set to end in November. So the Fed may soon want to use some phrasing other than “considerable time” to signify when it might start raising rates. It could sub out that phrase in this week’s statement. Or it could wait until its next meeting in October.

ZIRP today, ZIRP tomorrow, ZIRP forever!