Poll of top economists: QE2 will not change economic growth

The Federal Reserve dual mandate of stable prices and high employment are not being met. 

Stable prices are not being met because they are choosing an inflation rate of 2% versus a stable inflation rate. Furthermore, they do not include real estate in their price stability calculations, which is most families' largest ticket purchase in their lifetime.

High employment is not being met because robust economic growth is not happening.  We have been stuck at unemployment rates of 9+% for a long time. 

Economists are voting against the Fed's QE2.  The consensus economic growth has not changed one bit after the announcement, via Reuters:
The Reuters consensus was for 2.0 percent annualized U.S. GDP growth in the current quarter, picking up to 2.5 percent in the second quarter and 3.0 percent by the end of next year, all unchanged from the October survey.


Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier