There is no turning back now. The Federal Reserve plans to implement QE2 like it already said it would do two weeks ago.
But, Ben Bernanke has proven once again that he will not be trifled with by other Fed governors or forces which oppose him from outside the agency. Everyone from Republican members of Congress to prominent economists say the QE2 program will cause everything from inflation to a trade war.
“As the forecast looks right now it looks like we’ll be purchasing at this pace through the end of the second quarter to add up to $600 billion,” St. Louis Federal Reserve Bank President James Bullard told reporters on the sidelines of a conference, according to Reuters.
The Fed’s independence, often questioned, is still intact.
Douglas A. McIntyre