The Fed is in a tough spot. They want to do more. Things are unravelling in Europe and the slowdown in Brazil, India and China is well-advanced. While the jobs outlook has improved in the US, there is still considerable slack in labor markets. With interest rates already at zero percent what does the Fed do, 3 months into a presidential election year? The easy answer as far as I am concerned is to do nothing. And that's what they have decided to do. Call it a push.
And remember, we are already in April. If the Fed is just sitting on its hands now, then it has to be even more cautious about getting "too political" as each month passes. For this reason alone, I don't anticipate QE. I could be wrong going forward but so far the Fed has not signalled QE. In my view, things need t...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.