Possible Action from the Fed

So far, I’ve said that the Federal Reserve isn’t likely to start a third round of quantitative easing. In the past, the central bank has been pretty clear about its intentions. Until now, we haven’t seen any indications. Today that changed.

Late on Tuesday, Jon Hilsenrath of the WSJ reported that the Fed is indeed considering more action. This strikes me as mostly PR, and the story is quite vague. Still, they wouldn’t say it unless they meant something.

The GDP report this week won’t be pretty. I think it will be difficult for the Fed to do much of anything just before an election.

Posted by on July 25th, 2012 at 12:30 am


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