Quantitative easing hasn't worked to lower interest rates in the past but has caused a huge uproar from those opposed to the policy in the US. QE is therefore both ineffective and politically-charged. But a lot of people still expect it. Now three weeks ago, I ran a series of articles on this. See the following:
Bill Gross on his expectations for QE3 and more 28 Mar
Daily commentary: On QE3 28 Mar
Quick thoughts on Fed policy and the potential for QE 30 Mar
Video: On the third round of quantitative easing and the US economy 3 Apr
The overall gist here was that the Fed was not going to go QE3 but that it could continue rate easing or attempt to manipulate mortgages by buying up mortgage backed securities. My sense is that if the economy weakens enough, Treasury ra...
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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.