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FED prepares for Global Domino Default The Fed Doesn't Want Banks to Increase Lending

November 29th, 2009
Categories: News

Link: http://leconomistamascherato.blogspot.com/2009/11/fed-prepares-for-global-domino-default.html

Tim Duy - Director of Undergraduate Studies of the Department of Economics at the University of Oregon and the Director of the Oregon Economic Forum - noticed an amazing sentence in the minutes of the most recent meeting of the Fed Open Market Committee: As has already been widely noted, the minutes of the most recent FOMC meeting reiterated the Fed’s eagerness to reverse, not extend, policy: Overall, many participants viewed the risks to their inflation outlooks over the next few quarters as being roughly balanced. Some saw the risks as tilted to the downside in the near term, reflecting the quite elevated level of economic slack and the possibility that inflation expectations could begin to decline in response to the low level of actual inflation.

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