- Prison Planet.com - http://www.prisonplanet.com -
Will Fed Pump More Money as US Economy Sinks?
Posted By admin On August 2, 2011 @ 8:00 am In Money Watch | Comments Disabled
Aug 2, 2011
In Mehra’s view, the pace of the weakening in the United States raises questions about proposed cuts in government spending and supports the case for more quantitative easing (QE) from the Fed.
“Since the onset of QE2, we have believed that QE3 was a possibility. The disappointing job market numbers for the last two months and the current weak GDP growth data will force the US Federal Reserve to postpone any monetary tightening and instead focus on strengthening the recovery,” said Mehra.
“Government spending cuts have already begun and have also started impacting economic growth. With further cuts in government spending, either the Federal Reserve will have to announce QE3 earlier than expected, which will partly offset the fiscal tightening, or the possibility of the US economy once again falling into a recession cannot be fully ignored,” said Mehra.
The view that economic weakness will lead the Fed to pump more money into the system is gaining ground with others as well.
Article printed from Prison Planet.com: http://www.prisonplanet.com
URL to article: http://www.prisonplanet.com/will-fed-pump-more-money-as-us-economy-sinks.html
URLs in this post:
 CNBC: http://www.cnbc.com/id/43982149
 Image: http://www.prisonplanet.tv/
 BOJ to pump $1.4 trillion into economy in unprecedented stimulus: http://www.prisonplanet.com/boj-to-pump-1-4-trillion-into-economy-in-unprecedented-stimulus.html
 Bank set to pump £75bn into economy: http://www.prisonplanet.com/bank-set-to-pump-75bn-into-economy.html
 Paper Money Madness: Inflation-Fueled Economic Growth Does Not Indicate That An Economy Is Getting Stronger: http://www.prisonplanet.com/paper-money-madness-inflation-fueled-economic-growth-does-not-indicate-that-an-economy-is-getting-stronger.html
 Paper Money Madness: Inflation-Fueled Economic Growth Does Not Indicate That An Economy Is Getting Stronger: http://www.prisonplanet.com/paper-money-madness-inflation-fueled-economic-growth-does-not-indicate-that-an-economy-is-getting-stronger-2.html
 Money Problems That Never Seem To End: 25 Reasons To Be Absolutely Disgusted With The U.S. Economy: http://www.prisonplanet.com/money-problems-that-never-seem-to-end-25-reasons-to-be-absolutely-disgusted-with-the-u-s-economy.html
Copyright © 2013 PrisonPlanet.com. All rights reserved.