Federal Reserve Still Stuck?
A recent article from Reuters shows the clear divide between top Federal Reserve officials concerning the appropriate response of the Federal Reserve in spurring economic growth. Although the Federal Reserve recently extended Operation Twist, it has not initiated a new round of quantitative easing as many in the investment world have hoped.
One one side are officials such as Atlanta Federal Reserve leader Dennis Lockhart, who only believes the Federal Reserve should act should the situation in Europe or at home get more dire. On the other side are officials such as Chicago Federal Reserve Bank President Charles Evans, who argues that an aggressive approach needs to be adopted by the Federal Reserve. Of course, many question the very efffectiveness of quantitative easing and programs such as Operation Twist by the Federal Reserve.
For example, analyst Dick Bove recently came out and said that monetary easing won't nearly be as effective as deregulation of the banking industry. Because deregulation/lack of regulation enforcement worked so well in the years leading up to 2007...
For information on the probablity of QE3 by the Federal Reserve: here.