Read the Full Article >> http://www.economist.com/blogs/freeexchange/2012/08/ben-bernanke-jackson-hole
IF THE Federal Reserve eases monetary policy again at its meeting on September 13th, as I expect, it will be its most meticulously debated, planned and scrutinised move in recent memory. The case for action has been apparent at least since the spring when it became clear the economy would underperform the Fed's repeatedly lowered economic forecasts. Yet Ben Bernanke spent much of the press conference following the Fed's meeting in June, when it extended Operation Twist (the purchase of long-term bonds financed by selling short-term bonds) on the defensive over why the Fed hadn't done more. In August, it again chose not to pull the trigger. But it did release a statement that hinted the point was drawing near. The minutes to that meeting released three weeks later suggested it would take an immediate and powerful improvement in the economy to stay the Fed's hand...........
Read the Full Article >> http://www.economist.com/blogs/freeexchange/2012/08/ben-bernanke-jackson-hole
1 Comment
Johnson 3314 10am
9/19/2012 02:37:10 am
I feel that an appropriate analogy to the current predicament that the Fed finds itself in is one of drinking coffee in the morning or afternoon after lunch.
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