He might have couched his words in Fedspeak, but the intent was clear. Chicago Federal Reserve Bank President Charles Evans wants people to know that the Fed intends to make money cheap and free-flowing for a long time.
“To meet our objectives and manage risks, the Fed’s policy stance will have to be accommodative for quite a while. Economic agents should be prepared for a period of very low interest rates and an expansion of our balance sheet as we work to achieve both our dual mandate objectives.”
Given that the Fed only has a few tools, like interest rates and the printing press, and it seems set on tackling everything from climate change to workforce diversity, we shouldn’t expect anything less than “super-accommodative” policies.
That won’t help savers earn more interest, but it might give your stock portfolio a nice boost.