Goldman's Jan Hatzius: Quantitative Easing 2 Will Eventually Cost U.S. $2 Trillion

Goldman Sachs’ Jan Hatzius says QE2 is heading from $600 billion to $2 trillion and will continue through 2012 (via Zero Hedge).

He also believes the Fed may avoid any tightening measures until 2015. That means no interest rate hikes for half a decade.

This would be consistent with the Fed’s desire to provide consistent, long-term, accommodative policy while the U.S. consumer deleverages and the housing market stabilizes.

The potential impact on blowing asset bubbles in emerging markets and driving inflation there is obvious.

Read the full release at Zero Hedge >

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