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The spate of decent to good news on the economy has led prominent dove James Bullard (head of the St. Louis Fed) to throw in the quantitative easing towel, as reported today by Bloomberg.com. Note that Bullard was the first “Fed-head” to call for QE 2 in 2010 to “avert deflation”. Federal Reserve Bank of [...] ”[M]ost of the economic policies that support robust economic growth in the long run are outside the province of the central bank.” — Fed Chairman Ben Bernanke. A thoroughly chastened and discouraged Fed Chairman Ben Bernanke gave his annual speech last Friday at the Fed conference in Jackson Hole, Wyoming. After reading this year’s speech, and [...] The Fed just released its Minutes of the Federal Open Market Committee of June 21-22, 2011. It seems they had a discussion on QE3: [M]embers saw the pace of the economic expansion as picking up over the coming quarters and the unemployment rate resuming its gradual decline toward levels consistent with the Committee’s dual mandate. Moreover, with [...] This was from Bloomberg this morning: Federal Reserve policy makers are signaling they favor an abrupt end to $600 billion in Treasury purchases in June, jettisoning their prior strategy of gradually pulling back on intervention in bond markets. “I don’t see a lot of gain to reverting to a tapering approach,” Atlanta Fed President Dennis Lockhart [...] Ben Bernanke is speaking at the National Press Club today and his pre-released speech says basically that QE2 is working: Since August, when we announced our policy of reinvesting maturing securities and signaled we were considering more purchases, equity prices have risen significantly, volatility in the equity market has fallen, corporate bond spreads have narrowed, [...] Nassim Taleb is out promoting his new book, The Bed of Procrustes, a collection of aphorisms about economics, coming out on November 30. As readers know he is my favorite philosopher and guru of risk. He’s also a bit of a curmudgeon. He used to subscribe to this blog, but dropped out because, as his [...] Don’t know much about history Don’t know much epistemology Don’t know much about a philosophy book Don’t know much ’bout the econ I took But they say if we got Austrian Theory What a wonderful world this would be. Don’t know much about marginality Don’t know nothin ’bout praxeology Don’t know much [...] Don’t double-down your bet on Goldman’s latest assertion that QE2 is good for the economy. Last month chief Goldman economist, Jan Hatzius said it was bad. Goldman said before that the Fed would need to pump $500 billion to $1 trillion via QE. Then they said it would be at least $2 trillion, but really [...] |
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