I know, I know, I read what the Fed said on Monday. I just don’t believe it.
I would be shocked if the Federal Reserve doesn’t roll out a fresh round of quantitative easing (QE) to spur more robust economic growth down the road. This would be QE3.
We have already encountered two rounds of quantitative easing — where the Federal Reserve buys assets from banks to keep interest rates low and stock prices climbing — with the latest program, known widely as QE2 wrapping up on June 30. Critics says quantitative easing allows the Fed to print money and pump it into the economy and pressure inflation rates up and weaken the dollar in the process.
But with the wild swings on Wall Street and the entire world teetering on collapse, Obama needs some good news that lasts more than twelve hours.
Since he obviously doesn’t have a clue what sound fiscal and monetary policy is, or just simply doesn’t care, he will have to put a dress on the pig and make it look like he’s done something. But it will still be a pig.
I am aware that the Federal Reserve just said it will stick with loose monetary policies for another two years, and won’t roll out a QE3 for now. But they also said they will be ready to resort to more measures should the economy need it but for now, it’s just going to stick with low rates and their decision wasn’t unanimous.
I don’t believe them.
