Boston Globe (November 15)
Recent criticism from abroad of the Federal Reserve’s monetary stimulus program is “way off base.” The “complainers’ chorus” is led by China, Germany and Brazil. The Globe singles out China for “calling the kettle black” by accusing the Fed of currency manipulation. The U.S. should be “unapologetic” about the Fed’s plan to stimulate the US economy. As President Obama pointed out at the G-20 summit a strong U.S. recovery will benefit countries around the globe.
Tags: Currency manipulation, Fed, Quantitative easing, Stimulus, U.S.
New York Times (November 9)
During his trip to Seoul for the G20 meeting, President Obama is likely to face criticism of the Federal Reserve’s $600 billion quantitative easing plan. China, for example, hopes to divert attention from its own long-term currency manipulation. The criticism of the Fed is largely unwarranted. “The Fed’s policy also weakens the dollar, but its objective is to boost demand at home.” In fact, China needs “to shift course, allow its currency to rise against the dollar and rely more on consumption at home.”
Tags: China, Currency manipulation, Fed, Quantitative easing, U.S.
The New York Times (October 16)
Fearing deflation, the Federal Reserve appears poised to adopt quantitative easing measures. The Fed is widely expected to print new money and buy Treasury bonds, hence increasing the money supply. The Fed can’t, however, succeed alone. The New York Times calls on President Obama and Congress to adopt new stimulus measures to kick start the economy. “To put millions of Americans back to work, a lot more needs to be done. Mr. Bernanke can’t do it alone.”
Wall Street Journal (August 26)
Former Vice Chairman of the Federal Reserve Board Alan Blinder writes that “the Fed has already spent its most powerful ammunition; only the weak stuff is left.” Blinder examines the Fed’s remaining options for perking up the economy. He suggests tweaks, such as buying private assets rather than Treasuries, to strengthen the remaining options.
Former Vice Chairman of the Federal Reserve Board Alan Blinder writes that “the Fed has already spent its most powerful ammunition; only the weak stuff is left.” Blinder examines remaining options for perking up the economy. He suggests tweaks, such as buying private assets rather than Treasuries, to make the remaining options more effective.
New York Times (August 11)
Tuesday’s Federal Reserve statement “sparked a global sell-off in stocks on Wednesday.” Growth is now expected to be less than 2%. The Fed has indicated that it will do what it can, namely by keeping interest rates near zero and buying treasuries. This isn’t enough, but the government is unlikely to increase stimulus spending. The New York Times laments “the economy needs more and better help than it is getting.”
