- Sees potential risks in monetary policy.
- Sees inflation at or below 2% ‘for years to come’.
- QE3 may give less stimulus than previous bond buying.
Think how frustrating its been for those who are actually counting on the Fed to do something that does work.
- Says QE3 should put some downward pressure on home mortgage rates.
- Policy easing might help stabilize housing prices, reduce mortgage payments, generally bolster consumer confidence.
- Very important to continue to evaluate benefits, costs of QE3.
- Fed will act to head off any emerging threat to price stability.
So when does the evaluation begin on QE3? Six, eight, twelve months from now? Guess we sit back and wait to see what happens.
RTRS/BBG
