The Federal Reserve is conducting a two-day meeting of the FOMC. No one really expects much in the way of news to come out of the meeting. One thing markets are interested in hearing about is the prospects, however dim, of an extension of the current policy of quantitative easing. The consensus is that QE3 is nowhere on the horizon, but it is worth thinking about what it might look like. In any event the bigger question is whether monetary policy as currently conceived can affect the economy in ways we desire. In today’s screencast a look at the Fed and the prospects for further quantitative easing.
Items mentioned in the above screencast:
What subtle signs to look for in the FOMC release. (Mark Thoma)
Sorry folks QE3 ain’t coming. (Crossing Wall Street)
QE vs. QE2 vs. QE3. (Credit Writedowns)
Fed policy has served the purposes of banks, not the economy. (voxEU)