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Inching closer to a new Fed: Economics Professor

Friday, August 31, 2012 - 02:15

Aug 31 - The Federal Reserve is getting closer to implementing QE3 and a new way of communicating, according to Susan Collins, economics professor at the University of Michigan.

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We're in Jackson Hole economist Susan Collins who actually have the privilege of kicking things off today ahead of Fed Chairman Ben Bernanke's speech. Think the major take -- is in terms of QE3 are we inching closer to that now. I guess I think that we are I think that not only are -- -- closer to sound. Additional expansionary policies. And I think we're inching closer to a different way of the -- talking about. And in particular I was really struck -- ATP final remarks that it's him and me in terms of the concern around the great unemployment situation are really strong words and that is what features and his remarks. An interesting to almost a sense of frustration. At that level is stubbornly high and might -- -- I think that's exactly right. And I think that that's especially important if you think that the Fed's dual mandate they have incredibly successful in terms of the inflation stability. And they are. Convincing market's going forward forest fires in years ahead but much much less today. Clear impact in terms of unemployment not just the overall rate but many families who have long term unemployment -- -- Do you think there's a sense of some political heat obviously the Republicans have been talking about it's. This dual mandate and we know Mitt Romney's feelings about Ben Bernanke. Well I think that in this country election season anything -- this is going to be. Some signs seeing it clinically. The dual mandate of the -- is clear and I think that is what she'd get primacy. But certainly whatever they do will once tiger the other be interpreted as. Can the Fed do anything before the election in terms of QE3. I think they can not only in terms of additional easing but I think perhaps most importantly in terms of talking. About explicitly what they're trying to accomplish and not just getting. In terms of timing is that possibly September. It is possibly September this team and that's slightly and I think it's more likely and before the remarks we heard this morning.

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Inching closer to a new Fed: Economics Professor

Friday, August 31, 2012 - 02:15