Monday, June 6, 2011

Fed plans ending of QE2 ?

Stopping quantitative easing (QE) risks plunging the economy and financial system into another period of turbulent decline. The pressure is building on Fed to end QE2 because the inflation is ravaging. With oil price around 99 us dollars,  the Fed has little room to continue money printing. The deadlineof QE2 is around the corner. However, the presidential election is in next year, Obama will not let economic to collapse, that means the end of his presidential term. So, a possible scenario is a panic in market will happen to be used as an excuse to extend the Quantitative Easing .

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