Yesterday, Ben Bernanke announced that the Fed would do unlimited QE (bond buying until the economy got better) and that its main focus would be on improving the jobs market.
Will it work?
Here’s a brief Twitter conversation I had with my Eddy Elfenbein, who writes the blog CrossingWallStreet:
In the past, people worried that as soon as inflation came, the Fed would get nervous, and flip the switch back to tightening.
Yesterday changed the game. Now the expectation is, even if inflation rages, the Fed will still focus on jobs… and that’s exactly what Bernanke wants to see happen.
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