QE Who?

By |2014-09-09T09:40:36+00:00November 1st, 2010|Uncategorized|

The Fed is set to grow its balance sheet. What does this mean? The Fed is concerned that the economy is operating below its potential. During the first half of the year, the Congressional Budget Office estimated that the economy could have produced an annualized GDP of $14.1 trillion. Instead, the economy actually produced $13.2 trillion—a $900 billion gap. What’s a central banker to do? During normal times, this would call for a rate cut. Lower short-term rates would cut the rates on prime [...]