Daily: More on QE3 and the Fed’s dovish turn

The Kocherlakota speech is important because he was a hawk earlier in the third easing campaign. See last August's post "Kocherlakota: Statement on Dissenting Permanent Zero Policy." Greg Ip writes in two insightful tweets, "Kocherlakota's is the most important post FOMC speech yet; shows payoff to Bernanke's consensus building http://t.co/C7MXwxwD" and "(Kocherlakota, cont'd) By waiting until he had won over hawk(s), odds rise Bernanke policy outlives Bernanke chairmanship". I agree with those sentiments.
Right before the Fed's third easing round last year where Kocherlakota dissented, I wrote that I thought the Fed would be aggressive but late:

David Rosenberg was also on Bloomberg and sees operation twist too. But he also says he doesn’t see how the Fed could prevent a US recession....


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