Barron’s (June 11)
“The second half of the year promises to be an adventure.” The 10 financial wizards of Barron’s Roundtable “expect the Federal Reserve to launch a third round of quantitative easing, or Treasury-bond purchases, in an effort to juice the economy and rouse the somnolent job market. But they don’t expect that to do the trick.” Moreover, they harbor concerns over the world financial system, given the massive debt held by industrialized nations. To weather the storm, “the consensus among our experts is to stick with companies that have good businesses, savvy managers, healthy balance sheets, and low valuations. Preferably, they also pay dividends and buy back shares.”
Bloomberg (June 8)
“The Fed ought to get off the fence…. Bernanke and his colleagues should decide on a new program of monetary easing…. We think the case is stacked pretty strongly in favor of more quantitative easing— the Fed’s unorthodox (and controversial) method for driving long-term interest rates lower by buying government debt.”
Tags: Bernanke, Debt, Fed, Interest rates, Quantitative easing, U.S.
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.”
