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.
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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.
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Australia raised interest rates in a bid to control inflation amid an export boom.
The country’s Reserve Bank raised rates to 4.75 % from 4.5%, surprising most analysts, The Associated Press reported.
Booming demand for Australian minerals from Asian countries including China and South Korea has stoked Australian inflation.
“The risk of inflation rising again over the medium term…
Continue reading Australia Raises Interest Rates to Control Inflation
Australia Raises Interest Rates to Control Inflation originally appeared on DailyFinance on Tue, 02 Nov 2010 06:36:00.
It’s clear the U.S. economy is suffering from a lack of demand. So, this poor report will likely bolster Fed officials who want to keep interest rates low and employ more quantitative easing.
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