US

Economist: This Is Not The Fed's Last Shot, But It's Pretty Close

Richard Portes of the London Business School spoke to CNBC this morning about the quantitative easing 2 and whether or not the Fed had any remaining options.

  • 0:15 There are no other obvious macro-economic instruments available left. It isn’t the last shot, but it’s pretty close.
  • 0:40 Look at long rates in treasuries, they’re way down, and that’s partly because of QE. We do know, via St. Louis estimates, that the dollar fell by about 5% as a result of QE1. That’s a sort of stimulus.
  • 1:50 It’s hard to separate out what is making bond-purchasing surge, whether it’s QE or something else.

 

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