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Thursday, July 22, 2010

Fed Policy Options

FT Alphaville � El-Erian: What to expect from Bernanke’s report to congress: "the Fed has five broad (and not mutually exclusive) approaches available if it deems—and I suspect it is not ready to do so yet—that additional policy actions are needed: hyper time extend the “exceptionally low for an extended period” interest rate signal; push banks to lend more by cutting the interest it pays on reserves; directly extend loans to certain segments of the non-financial economy; resume asset purchases; and cap interest rates."

Some other views on the options:

Scott Sumner

Krugman

http://www.huffingtonpost.com/joseph-e-gagnon/time-for-a-monetary-boost_b_654944.html

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