MarketWatch/Greg Robb
“The Federal Reserve’s two-day Chicago strategy conference laid the groundwork for the aggressive use of asset purchases, known as quantitative easing, to counter the next recession, experts who attended the forum said. With short-term interest rates in a range of 2.25%-2.5%, the Fed does not have a lot of ammunition to fight the next downturn. In the past, the Fed was able to slash rates by 5 percentage points to stimulate the economy as needed. So the Fed is going to use ‘pretty aggressive, desperate, measures,’ to stem the next recession, said Adam Posen, president of the Peterson Institute for International Economics.”
USAGOLD note: What is odd about the resurrection of quantitative easing is that few in and around the Fed seem opposed to it. Now, the Fed intends to employ “desperate measures” in an ordinary recession.
Repost from 6-9-2019
