Saturday, November 06, 2010
Germany is not impressed
"I don't think they are going to solve their problems," said German Finance Minister Wolfgang Schäuble. "The Americans have already pumped an endless amount of money into the economy via taking on extremely high public debt and through a Fed policy that has already pumped a lot of money into the economy. The results are horrendous."
The German reaction is pure hystery. The Federal Reserve’s monetary policy committee said U.S. inflation is below target levels, and that it was "prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate." The Fed sees no danger in inflation, on the contrary, it is trying to fire up inflation, so it decided to print six or nine hundred billion bernankes. At this magnitudes, exact numbers are irrelevant.
Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy was Thomas M. Hoenig, who judged that the economy continues to recover at a steady pace.