(What did I write the other day when the market flash-crashed? Oh yeah: ” I guess someone thought they needed some help getting another TARP bailout deal done (QE4 is meeting some resistance) and here we are.“)
from the WSWS
…Over the weekend, former US Treasury Secretary Lawrence Summers called for the Federal Reserve to abandon its plans to raise the federal funds rate for the first time in nearly nine years and instead extend its current policy of zero interest rates into the indefinite future.
Summers went further on Tuesday, tweeting that the Federal Reserve should consider further monetary expansion in response to the selloff. As the Financial Times put it, Summers “suggested… that the Fed should even consider another [quantitative easing] bond-buying programme.”
This sentiment was echoed in even more explicit terms by Ray Dalio, head of Bridgewater Associates, the world’s largest hedge fund, who predicted in a research note quoted by the Financial Times that the “next big Fed move will be to ease (via QE) rather than to tighten.”
[read more here]
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