1.15.2012

QE3!!!

The Fed voting rotation has just ejected all the hawks and brought in a bunch of doves. The only voting hawk will now be Jeffy Lacker, who is sure to have a series of lone dissents this year.

Get ready for QE3!

CNBC:
Federal Reserve officials are seriously considering giving the US economy—and especially the housing market—an added jolt with more quantitative easing.

Fed officials are likely to discuss such a move at their Jan. 24-25 meeting, when the central bank will issue its first quarterly forecast on interest rates under the new communication policy.

Two of the new voting members this year on the Federal Open Market Committee, which sets interest-rate policy, have recently suggested they would support more assets purchases.

San Francisco Fed President John Williams said that sustained high levels of unemployment, as forecast by many Fed members, "does make an argument that we should have more stimulus."
Hurry up, Fedsters! Those trillion-dollar deficits aren't going to monetize themselves!

6 comments:

SarahB said...

I have to be honest, that mostly went over my head...but my instincts say this sounds like more crappy, expensive busywork.

W.C. Varones said...

Perhaps a Fedspeak translation guide would help.

Quantitative easing: printing money

Accommodation: printing money

Asset purchases: printing money

Stimulus: printing money

Monetization: printing money, something the Fed never does as it is quantitative easing, accommodating, and providing stimulus via asset purchases

Doo Doo Econ said...

QE3 just does not sound as cute as QE2. Maybe for people to latch on we need a scifi reference...QE3PO..

Quantitative Easing 3 Peeved Off

Anonymous said...

If they're going to print money, why not dole it out directly to U.S. citizens, rather than the criminals in "high finance"?

One trillion dollars divided between every U.S. citizen 18 or older, would be around $5,000 per person. If two parents live with an [unemployed] adult daughter/son, that's $15,000. It would do a lot more than giving it to JP Morgan Chase at 0% interest. F*ck.

SarahB said...

Euphamism HQ, got it. Time to put in my well.

W.C. Varones said...

Anon,

Indeed!

That's what I proposed a year and a half ago in Devaluation is the only way out.

Please pass it along to friends if you agree.

Nailed it!

July 5 :