Rogoff Says Fed Will Embark on QE3, Act ‘Decisively’ on Economy

Federal Reserve policy makers are likely to embark on a third round of large-scale asset purchases, moving “more decisively” to secure the U.S. recovery, said Harvard University economist Kenneth Rogoff.

“They certainly should do something right away,” said Rogoff, a former International Monetary Fund chief economist who attended graduate school with Fed Chairman Ben S. Bernanke. It’s “hard to know” if Bernanke would immediately be able to gain the support of Federal Open Market Committee members, Rogoff said in an interview today on Bloomberg Television.

The FOMC meets today in Washington a day after the worst day for U.S. stocks since December 2008. Bernanke last month outlined policy options including additional asset purchases or strengthening the commitment to low interest rates after the first two rounds of so-called quantitative easing failed to keep the unemployment rate below 9 percent.

“Out-of-the-box policies are called for, especially much more aggressive monetary policy, however unpopular that may be,” said Rogoff, 58, a former Fed economist who like Bernanke earned a Ph.D. from the Massachusetts Institute of Technology. The Fed is “going to move more decisively,” Rogoff said.

http://www.bloomberg.com/news/2011-...rk-on-qe3-act-decisively-to-aid-recovery.html

 

Another load of shit....

 

Another clueless Obama Harvard economist.

 

what happens when they intervene and markets go down ?!?!?

governments are just another franchise.

 

This time they think they can save the markets from falling, oh they might for a day or a week or even a month but they are out of ideas and anything they do push through to prop up markets will only be a total negative moving forward. Let the markets find a bottom on their own, stop intervening!

 

QE3 is possible because inflation is just 1.4% now