All Commentary
Wednesday, June 22, 2011

Hope Fades for Fed’s Strategy


“The Federal Reserve hoped that its three-year-old economic rescue campaign would reach a climax at the end of June. It hoped that consumers and businesses by now would be spending more and more, and the central bank could start doing less and less. That peak now looks like a long plateau. The Fed still is expected to announce Wednesday that it will halt the expansion of its aid programs at the end of June, as scheduled, when it completes the purchase of $600 billion in Treasury securities. But growth is sputtering, and economists now expect that the Fed will leave its $2 trillion of bandages, props and crutches untouched until next year.” (New York Times)

Did anyone really expect otherwise?

FEE Timely Classic
“Quantitative Uneasiness” by Ivan Pongracic Jr.