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Fed stimulus is risky and a waste of time: Economics Prof.

Friday, August 31, 2012 - 01:52

Aug 31 - A third round of QE from the Fed might make matters worse for the economy, according to Martin Feldstein, Hardvard economics professor.

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Top economists gathering in Jackson Hole Wyoming is Fed Chairman Ben Bernanke talks about what's next in terms of policy let's get some reaction from economist. Barton Phelps. Good to see you once again nice to see you so have we seen mr. Bernanke -- closer to QE3 after the speech. Maybe a little bit he certainly. Talk about the achievements that quantitative easing him and since it began. But he didn't make any promises about you know what what happened in September. What you think will be at trader it will prompt the Fed to go ahead with QE street will be a specific number will it be Europe something the numbers. Recently have been a little bit better the economy still awful. Unemployment is awful. Growth rate is awful there's nothing good out there so they don't need another number. To do it my sense is that they won't accomplish much by doing it in the -- to the risk of having excessive liquidity. I was there that'll be a problem in the future. But if they do it they'll do it because there's a sense that well things are so -- -- just truck. Do you think there is a lot of political pressure on the -- right now we have an election we have. Republican candidate who is not interested in keeping mr. Bernanke. We've got two meetings before an election. But -- Whatever they do in those meetings and not gonna have any significant impact on the economy. Even under normal circumstances. Something that you do in September isn't gonna change the economic outlook before the election November. And under these circumstances. Were the policies are relatively. Ineffective. It's hard to so it's not. To do it in order to change the economy -- to do it in order to be seen to be doing something.

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Fed stimulus is risky and a waste of time: Economics Prof.

Friday, August 31, 2012 - 01:52