September 23, 2016
Sir, Sam Fleming writes: Federal Reserve once again held short-term interest rates unchanged… a victory for doves… Even if they concede a quarter-point increase by the end of the year, it will leave the Fed on track for the shallowest rate-lifting cycle in modern times”. “Doves ascendant in Yellen’s Federal Reserve” September 23.
The effects of keeping those interest rates down, when combined with the QEs, and when combined with the regulatory subsidies implicit in the 0% risk weighting of the sovereign, goes primarily and in large scale to the government. In that respect I am not sure we should talk about Fed doves, they all qualify more as statist hawks.