News
WSJ | Fed Unlikely to Remove Its Economic Stimulus Just Yet
Federal Reserve officials have grown more confident that a self-sustaining economic recovery is taking root in the U.S., but they want to see more evidence before they seriously consider how and when to pull back the enormous amounts of stimulus they pumped into the financial system.
NYT | The Chasm Between Consumers and the Fed
Inflation in the United States is low, and seems to be going down if it is moving at all. The Federal Reserve thinks it will be years before there is any significant inflation.
NationalJournal | Moody's Downgrades Greek Debt
Leading bond rating group Moody's Investor Service cut Greece's credit rating by three notches Monday and suggested it could cut even further, a sign it believes the nation's notoriously troubled finances show only glimmers of improvement.
Market Watch | Treasurys Fall As Debt Sales Overshadow Middle East
The 10-year note's yield has dropped from the recent peak of 3.77% set a month ago as the market benefited from demand for safe assets. The turmoil in Libya has escalated and there is some concern that antigovernment protests may soon spread to Saudi Arabia, a major oil producer and exporter.
Econ Comments
Minyanville | The Quantitative Easing Debate Continues
Janet Yellen's latest speech shed some light on the Fed's mindset regarding monetary policy.
LA Times | Is inflation wolf at the door?
As oil and other commodities surge, some investors fear a spiral. Bernanke insists the Fed has it under control.
Fox Business | Most Economists Say Fed Easing is Helping
The survey from the National Association for Business Economics found 62.4% of the economists polled think the central bank's $600 billion stimulus plan is working.
Bloomberg | Lockhart Says Fed Shouldn't Rule Out More Asset Purchases
Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank shouldn’t rule out asset purchases beyond the $600 billion planned by June because turmoil in the Middle East risks causing a slowdown in the U.S.
Blogs
Daily Capitalist | QE To Infinity: Not?
For now, leaving the important Mideast disturbance and all the known other issues aside, the cards look increasingly aligned for a traditional “sweet spot” year for economic activity: Low interest rates, lots of labor slack, a good deal of unused manufacturing capacity, and tons of fiscal stimulus. Plus lots of skepticism.
Econlog | The Macro Implications of Monetized Debt
Everybody talks about a monetary "exit strategy" once a strong recovery takes hold. But what about a fiscal exit strategy? Other than Ron Paul, does anyone have several hundred billion in spending cuts ready to go?
WSJ: Real Time Economics | Rapid Jobless Drop May Accelerate Tighter Monetary Policy
The startlingly quick pace with which the unemployment rate has fallen is raising questions whether the labor market could soon reach levels that may start to generate inflation and alter the monetary policy outlook.
