The headline says it all, how can that not be seen as an act of desperation as we begin the fall…
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Fed Undaunted by Uncertain Prospects for Money Printing
The U.S. Federal Reserve runs the risk of diminishing returns from its next round of money printing to amplify the subdued economic recovery, but that won’t stop it from trying.
Minutes due Tuesday from the Fed’s most recent policy-setting meeting may reflect some divisions among officials over whether to launch another round of asset purchases, known as quantitative easing.
Investors, however, assume the Fed will pull the trigger, likely at its next policy-setting meeting in November.
A Reuters poll of 16 primary dealers—investment firms that deal directly with the Fed—showed all expected the central bank to return to buying bonds.
All but one predicted the announcement would come at the Nov. 2-3 meeting.
The Fed cannot sit idly by with unemployment stuck near 10 percent and inflation below the central bank’s perceived target, economists say. Statements from some of the Fed’s top officials in recent days have made it increasingly clear that action is likely, even though others remain vocally opposed.
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myBlessedHope 