Ben Bernanke, the chairman of the Federal Reserve, gave an interview to 60 minutes and said that the central bank might be spending more than $600 billion on buying bonds, to stimulate the economy.
I guess that when the European Central Bank led by Jean-Claude Trichet joins the gang with some Euro printing, Bernanke feels more comfortable to talk about raising the sum in the US:
In Europe, this bond buying is sterilized and is essential to revive the Euro, which is in danger. In the US, this is pure dollar printing – devaluing the currency.
Here’s a quote from CNN:
“He explains why the Fed announced its intention to buy $600 billion in Treasury securities, defending against charges the move will lead to inflation and not ruling out the purchase of more,” CBS said Friday.
Is it QE2+, QE3 or “QE Forever”? Given the recent job report, more quantitative easing seems justified, although its efficiency is still doubted.
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