U.S. Federal Reserve today launched the second phase of its quantitative easing program, the so-called QE2, saying it will buy up to $600 billion more in long-term U.S. Treasury bonds to help stimulate a U.S. economy that’s gro…
Just about everyone expects the Federal Reserve to announce a bond-buying program with the goal of stimulating the economy. But not many observers think it’s a good idea — and the chorus of critics is only getting louder.
…
Former Fed Chairman Paul Volcker warns that more quantitative easing by the Federal Reserve will stoke inflation. “When money is too easy for too long, we will have more” asset bubbles, the 83-year-old Volcker said.
…
Bernanke’s zero-interest-rate policy is backfiring. Only the wealthy benefit from rising financial assets, as average Americans take on more debt. Worse, risky speculation is again being rewarded.
Continue read…
The Fed’s latest Beige Book report confirms what earlier economic data has indicated. Eight of the 12 regional Fed banks, including San Francisco and Chicago, reported some form of growth in the September/October period. But no…