This sure sounds like a “trial balloon” for another round of Quantitative Easing.
The gold market will explode if they go for it in my opinion.
Fed’s Yellen: QE3 May Be Warranted
By Scott Lanman and Jennifer Oldham – Oct 21, 2011 11:57 AM PT
Federal Reserve Vice Chairman Janet Yellen said a third round of large-scale securities purchases might become warranted if necessary to boost a U.S. economy challenged by unemployment and financial turmoil.
The central bank should also give “careful consideration” to Chicago Fed President Charles Evans’s proposal to tie the near-zero interest-rate pledge to specific levels of unemployment and inflation, Yellen said today in a speech in Denver.
The remarks signal Fed officials may be prepared to delve further into unprecedented monetary territory and take criticism inside and outside the central bank for expanding the balance sheet. Fed policy makers are struggling to lower unemployment that’s been stuck near 9 percent or higher for 30 months without boosting inflation that’s already close to the central bank’s long-run goal.
Ed note... As I have said for 3 years now...The West will print money to Infinity and Beyond...
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