Further Fed easing is likely


first_img THE MINUTES of the Federal Reserve’s latest meeting released yesterday showed growing tension between members, as the panel edged towards further quantitative easing to help rouse the American economy. The panel of banking governors took more than five hours to reach an agreement on 21 September – around twice as long as meetings earlier in the year. Many of the panel felt the need to act “before long” if the economy fails to improve, but members argued over a number of options to stimulate the economy, from simply publishing the Fed’s targets for inflation rates through to buying billions of dollars of long-term Treasury bonds. Long-term dissenter Thomas Hoenig was the only governor to vote against the whole of the Fed’s decision to hold interest rates at the historic low of zero to 0.25 per cent. Hoenig expanded on his position in a speech yesterday, saying that the Fed needs to be mindful of the wider effects of its decisions on the currency markets. “As desperate as I am to see unemployment drop down, I don’t want to take short-term measures that I don’t think in the long run will solve that problem,” he told the National Association of Business Economics. Many bystanders said that QE2 was inevitable after the minutes were published yesterday, but were unsure of how far the stimulus will go. “The Fed is moving closer to another round of quantitative easing but also wants to weigh the benefits and risks, and also, importantly, find a way to communicate its intentions to the market,” said Michael Sheldon, chief financial market strategist at RDM Financial. “The Fed has almost boxed themselves into a corner in the sense that the market expects some type of activity.”The tilt towards intervening in the economy is mirrored in the UK’s monetary policy committee, where some members are gunning for more QE. Share Tuesday 12 October 2010 9:25 pm Further Fed easing is likely KCS-content by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrapcenter_img Show Comments ▼ whatsapp whatsapp Tags: NULLlast_img

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