“Central Banks in Rate Clash” – WSJ
“The Federal Reserve’s expected move is a controversial step at home and abroad. One Fed calculation shows that every $500 billion of bond purchases has the same stimulative effect as about a half-percentage-point cut in short-term interest rates. But Fed officials are highly uncertain about the outcome, as they don’t have much experience with the policy. The Fed is restoring to unconventional policy because its main lending rate is already near zero.
Officials in many developing countries worry that the Fed’s easy-money policies could stoke inflation and asset bubbles in their own economies.” Read more.
“Central Banks in Rate Clash”
Jon Hilsenrath, Andrew Batson, Subhadip Sircar and Enda Curran
Wall Street Journal, November 2, 2010.
Image by Jennifer Renee / FreeDigitalPhotos.net.
