There’s not much news yet today (no bailout in Ireland, no crash in Shanghai), and that’s great news for the economists who penned this open letter to the Fed opposing QE.If you haven’t read it, basically, a bunch of conservative investors and economists (plus Jim Chanos) say QE is killing the dollar and causing inflation.
Maybe that’s true, but just imagine how absurd and inane it would be if Bernanke said: OK, I was wrong, and I’m going to listen to William Kristol and Cliff Asness. If the Fed weren’t already a joke, this would ice it.
It’s possible that we won’t get the whole $600 billion program, especially if the economy continues to firm. But if you’re worried about Fed credibility, listening to critics would be the worst thing.