Hilsenrath says Fed eases again in Sep

The WSJ’s Hilsenrath says that the meaning of the August FOMC minutes is that the Fed is about to ease monetary policy.

We are not going to get a substantial and sustainable anything before the 13th of September, so the Fed is pretty clearly going to ease monetary policy again. From the minutes, it looks like further balance sheet expansion and moving the low rate pledge out a year to 2015. I doubt we will see a reduction in the IOER rate.

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8 Responses to Hilsenrath says Fed eases again in Sep

  1. On your Marx says:

    give me a break.
    As if the Fed will do anywhere near enough ‘easing’ to make much difference.

    your mate Cochrane is again showing he doesn’t understand basic economics and can’t even add up of government debt!

    • Ricardo says:

      Hmm, did not see the Cochrane link you are talking about…

      As for easing, i doubt it can make much difference, but i do not doubt that they will try.

  2. b_b says:

    How do they expect them to ease when we know QE is a monetary non-event?

  3. On your Marx says:

    try <a href= "http://economistsview.typepad.com/economistsview/2012/08/put-inflation-fears-aside.html&quot;.

    I could put in Brad De Long’s opinion but you wouldn’t like it.

    To make a difference they would have to really ramp up their balance sheet. Republicans would jump all over Bernanke.

  4. On your Marx says:

    this is the best link here.

    Bernanke ramping up the Fed’s balance sheet just before an election. Don’t think so

  5. On your Marx says:

    Sorry I didn’t meant to say they wouldn’t , Merely whatever they do will be vastly too small

    • 3d1k says:

      Really enjoy the to-and-thro at Ricardian. Despite divergent opinion there appears a recognition (resignation?) of the limitation of, well everything! Jeesh, who knows, but in reference to Ricardo’s challenge above, for me $100 to animal welfare org if the Fed does not (sorry guys 20+ year veg, had Peter Singer as a Lecturer in younger days, persuaded me). Cheers.

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