Re: Boston Official Calls for Bond Buying
Eric Rosengren, President of the Federal Reserve Bank of Boston, calls for an "open-ended program" of bond buying that will entail even "more substantive action than we've taken to date,". Ominously he states that the bond buying program would continue "until we start seeing some pretty significant improvements in growth and income."
The Fed engaged in Quantitative Easing One in 2009 and 2010 to the tune of $1.25 trillion. That didn't do the trick, so it engaged in QE2 in 2011 for another $600 billion. So, we have had $1.825 trillion dollars of monetary stimulus so far and Mr. Rosengren, obviously a disciple of Paul Krugman, thinks that the Fed just hasn't done enough.
If Mr. Rosengren has his way--and he simply may be sounding out public reaction for a policy already endorsed by the Federal Open Market Committee--the Fed will print money until the purchasing power of the dollar is destroyed.