Why the Fed is Sticking with Quantitative Easing

Friday, December 17, 2010

Jon Hilsenrath, chief economics correspondent for the Wall Street Journal, talks about Federal Reserve policy regarding quantitative easing, its effects on inflation, and why the Fed remains optimistic about economic recovery.


Jon Hilsenrath

Comments [9]

When has the Fed ever done anything they were mandated to do? They were mandated to keep unemployment down too...hows that going

Dec. 17 2010 10:40 AM
Joe Corrao from Hollywood

Ha...I posted for 5 years about Ron Paul and his work to audit the Fed...NOW you talk it up...amazing, talk about being day late and a (fiat) dollar short....The View is a better political show...heck Car Talk is too....

Dec. 17 2010 10:33 AM

So glad you gave a member of Rupert Murdoch's press corp a chance to weigh in with their views on economics. Seeing as they only have Fox News, WSJ, Glenn Beck to get their word out.

He says: "I'm surprised that people in Washington aren't calling deficit reduction stimulative..."

That's because it isn't. This was Hoover's plan, austerity in a downturn.

Dec. 17 2010 10:28 AM
Marcos from the Bronx

Tax cuts for the rich and more money for big corporations are not stimulus they are transfers of wealth from government programs which may benefit us all into the pockets of the elite.

Dec. 17 2010 10:25 AM
Robert from NYC

So your haircut cost hasn't risen but if you live in NYC your Verizon bill went up if you use Verizon and so has you Con Ec bill and you can thank the Public? Service Commision for those increases. In addition food prices rise monthly, I know I do food shopping and personally, my rent went up. So don't tell me the cost of living hasn't risen!! Bulllcrap

Dec. 17 2010 10:22 AM

investment was withheld by the shareholder class now that they have their tax cuts well see if they rejoin the economy.
might be a good time to sell your gold.

Dec. 17 2010 10:22 AM

The caller Frank is a GOP ringer, spouting the standard talking points...hey, Brian, maybe you should've ask him some quantitative questions instead of giving him a free platform for his agenda?

Dec. 17 2010 10:21 AM
amalgam from Manhattan by day, NJ by night

All the gold standard, the-sky-is-falling, survivalist-type crowd crowing about how inflationary pressures are upon us will certainly be opposed to the QE2, but the actual effect that the Fed's measures will have will be negligible and were probably to established with that intention in mind.

The only real bubble(s) forming are in commodities that owe their inflationary ways more to growing demand/environmental limitations rather than pure speculation (cotton, wheat, rare earth metals, etc.). (Although gold's worth is probably due, to a large extent, to speculation.)

The Fed will have to watch for inflation closely no matter what they do because, well, that's one of their stated objectives for existence.

Dec. 17 2010 10:17 AM

My friend is a 60 year old Phd economist/ He he drives a tired old Toyota Corolla. Lives in a VERY modest house out in the sticks. He has never been on a real vacation - never been to Europe, Asia, even Canada. Doesn't believe or trust in the stock market.

I love him like a brother but, based on knowing and listening to him since I was in high school, I don't think much of so called "experts" on the economy.

Dec. 17 2010 10:14 AM

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