Federal Reserve

Federal Reserve: After the turmoil of Monday, all eyes turned to the Federal Reserve to see how the central bank and its chairman, Ben Bernanke, would react. Most of the speculation focused on whether Bernanke will announce a third round of quantitative easing, or EQ3. But while speaking on Tuesday morning issued a notification of EQ3, some economists believe that the movement is unlikely. According to James Rickards, senior director of Tangent Capital Management is the only public expects the Fed Tuesday is the status quo. In an interview with the correspondent Daily Rickards, then it would not exclude it in the coming months, the Fed did not announce a Tuesday QE3 cite three main reasons. To begin, Rickards said: "The Bold lacks credibility because QE2 has failed." There is also a large central meeting is scheduled for late August in Jackson Hole, Wyoming, and the Fed will probably delay the debate on a third round of the quantitative easing until now.And finally, there is Europe. As European countries began to experiment with their serious financial difficulties, have recently started to push its own version of QE, or what he calls Rickards "EuroTarp". "It must be accepted, all members and will have a couple of months," said Rickards. "Most likely, the Fed wants to coordinate with the European Central Bank, the first and did not have time to do so, as the euro, the crisis erupted recently." In fact, Rickards said, would be affordable to get "much worse before getting QE3." Anthony Randazzo, director of economic research at the Reason Foundation, agrees, saying TheDC the second round of QE is unlikely that in this phase. "When it comes to the Fed is considering its options for you must take into account the problems," says Randazzo. "And other than acquiring the entire system, unresolved, Bernanke cannot do much. We have a Contracting State for the economy, which had goosed the debt, but is now to reduce debt."