Former Director of U-S Mint talks about QE3
9/20/2013 11:53:00 AM
The Federal Reserve's decision to keep up its stimulus program bolstered the view that a strengthening U.S. economy will drive world growth forward in the coming months. The Fed's decision to hold back on cutting its purchases of $85 billion a month in bonds may give a temporary respite to developing country economies, which were roiled by the prospect of a reduction. But the easing is inevitable and some analysts see more pain ahead for the emerging markets. But Joseph Gagnon, a senior fellow at the think tank Peterson Institute for International Economics, said he does not think the upheaval in emerging markets is really about the Fed tapering stimulus. He says it's partly because emerging markets haven't done reforms to make their economies more efficient.
News Radio KLBJ's Todd Jeffries spoke with Former U-S Mint Director Philip Diehl about QE3 - listen to the left...
The Following is from Philip Diehls Blog http://philipndiehl.com/author/pndiehl/
Three months ago, no one knew what the FOMC was. Today, millions of eyes around the world were on the FOMC awaiting its decision on whether to taper QE3. Its decision to postpone tapering came as a surprise to the vast majority of analysts who had viewed the weight of recent economic data as indicating the economy justified a reduction in QE3 bond-buying.
Now, in the wake of the FOMC’s decision, some analysts are lurching to the opposite extreme, speculating that a majority of the FOMC sees the economy as weakening. We won’t know what individual members think about the state of the recovery until the minutes of this week’s meeting are released. But the Fed’s announcement makes it clear a majority of the FOMC believe the economy continues to expand.
Philip Diehl's Blog http://philipndiehl.com/author/pndiehl/