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Thursday, May 19, 2011

Monetary

News                                                                                                                             
CNN: Money | Fed minutes: QE2 jitters still there
A few Federal Reserve officials are skeptical that the central bank should carry out its full $600 billion bond-buying program through June.
Bloomberg | Goldman Cuts Dollar Forecast Versus Euro on Growth Outlook
Goldman Sachs Group Inc. (GS), the U.S. bank that lost money from trading on only one day in the first quarter, cut its dollar forecasts saying growth in the world’s largest economy is lagging behind other nations.
Market Watch | SEC seeks to limit credit-rater conflicts
The Securities and Exchange Commission on Wednesday voted to propose a package of regulations that proponents say would stop credit-rating agencies from providing inflated opinions to get more business.
WSJ | Fed Officials See Gradual Exit Plan
Federal Reserve officials laid out a broad blueprint for very gradually tightening financial conditions when the economy is healthy enough to bear it.

Econ Comments                                                                                                             
Minyanville | What Happens When QE2 Ends?
By the time Main Street starts to feel the pain and another recession begins to creep up, the demand from Congress for QE3 will be there.