News
Bloomberg | Fed’s Next Steps Divide Economists as Purchases Wind Down
Federal Reserve policy makers are almost certain to fulfill their plan to buy $600 billion in Treasuries, a survey of economists shows. How they finish the purchases and what they do next is a matter of disagreement.
Fox News | Fed meets as economic risks widen
The Federal Reserve meets Tuesday at a time of widening economic risks: higher oil and food prices; unemployment near 9 percent; crises in the Middle East and Japan.
WSJ | Fed to Assess Multiple Trouble Zones
The Federal Reserve is unlikely to follow its European counterpart in hinting it is ready to reverse its easy-money policies, as the U.S. central bank waits to see the impact of several trouble zones brewing around the world.
CNN Money | Sagging stocks put Bernanke on the spot
Will QE2 still be working if the U.S. stock market takes a swan dive?
Econ Comments
WSJ | 'I Can't Eat an iPad'
The Federal Reserve has been on a media campaign to sell its monetary policy to average Americans, but this hasn't always gone smoothly. Witness last week's visit to Queens, New York, by New York Fed President William Dudley, who got a street-corner education in the cost of living.
Minyanville | The Economic Impact of the Earthquake and Japan's Struggle to Recover
The Bank of Japan said it will provide "massive" liquidity to the banking system in order to assure the crisis will remain one of massive damage and not massive deflation.
Blogs
The Economist: Free Exchange | Ahead of the Fed
In all likelihood, Chairman Ben Bernanke will announce no change to planned asset purchases, and no change in the Fed's interest rate language. But observers will look carefully to see if shifts in the Fed's economic assessment suggest a change in bias.
WSJ: Real Time Economics | Will Higher Energy Prices Pass Through to Consumers?
Are there any signs that higher energy prices are translating into rising core inflation? We may get an answer this week.
The Economist: Free Exchange | Problems not yet solved
The Financial Times reports today that euro-zone leaders have reached a deal on a series of measures designed to solve the currency area's ongoing debt crisis. At first glance, the numbers look impressive. Euro-zone members will bulk up funding levels for the European Financial Stability Fund and its post-2013 successor, the European Stability Mechanism. The plan would also give the EFSF the ability to buy some government debt.
Volokh Conspiracy | David Stockman on The End of Sound Money and the Triumph of Crony Capitalism
It has been along time since I’ve heard anything about David Stockman. But this analysis of the justification for the bailout (including intervening to preserve the commercial paper market) raises some excellent questions. As does his analysis of the federal budget and what the future holds.
