Tuesday, April 26, 2011
Irwin Kellner, MarketWatch's chief economist.
April 26, 2011, 12:01 a.m. EDT
Commentary: Easy monetary policy helped some, but hurt others
PORT WASHINGTON, N.Y. (MarketWatch) — The Federal Reserve’s extremely easy monetary policy may have helped some but it has hurt others.
Nowadays, the financial markets’ latest obsession deals with the possibility that Fed may soon change its policy from ultra easy to just plain easy. Naturally, they are trying to scope out who will be helped or hurt as a result.
In my view, regardless of whether the current phase of the central bank’s policy (known as quantitative easing) ends in June as scheduled, you may anticipate that Fed policy will still be a long way from returning to normal — much less tightening.
That being the case, the effects of its current policy will linger for some time to come. Those who have been helped will continue to enjoy the Fed’s support, while those who have suffered can only look forward to more of the same. Article posted here
About Irwin Kellner
Irwin Kellner, MarketWatch's chief economist since 1998, writes a weekly column on the economy and the financial markets. He has been a leading economist for more than 40 years and previously served as chief economist for North Fork Bank, Chase, Chemical and Manufacturers Hanover. Widely quoted by the media in the U.S. and abroad, Kellner regularly addresses groups of business people and community leaders and appears regularly on Cablevision's News 12 Long Island.
Posted by Helge at 9:10 AM