There was little economic data this morning to end the week. Headed into next week, Stocks and Bonds are trading near unchanged levels in quiet trading. Next week, the Bond markets close early on Friday for the unofficial kickoff to the summer in observance of Memorial Day, where all markets will be closed on May 27.
The ongoing scandal at the IRS continues today with Congressional hearings set to begin on Capital Hill. It is alleged that the IRS was targeting certain conservative groups for increased scrutiny when applying for tax-exempt status. There are two witnesses scheduled for today – Steven Miller acting IRS commissioner who has been forced to resign by President Obama, and J. Russell George, the Treasury inspector general for tax administration.
The ongoing Bond buying program by the U.S. Federal Reserve took a hit yesterday from one of its proponents. San Francisco Fed Bank President John Williams, usually considered dovish when it comes to monetary policy, said that due to the recent uptick in the labor markets, he feels that the easy money policies should start to taper down by late this year. Mr. Williams said that the $85B a month QEIII program should end by late this year, but he did say that he will have to see a sustained improvement in the job markets in order for the Fed to stop buying Bonds.
A dove, when it comes to monetary policy, promotes monetary policies that involves the maintenance of low interest rates. The term is derived from the docile and placid nature of the bird of the same name, and is the opposite of the term “hawk”.