Fed's quantitative easing timetable is the big $2 trillion question

Filed under: Federal Reserve, Recession, Financial Crisis

MarketWatch Chief Economist Irwin Kellner sometimes boldly goes where no man has gone before, to cite an old Star Trek phrase, and this week he evaluates the U.S. Federal Reserve's dilemma.

And what a dilemma it is: regarding quantitative easing policy, if the Fed withdraws its record cash injections too soon, it could trigger a double-dip recession, Kellner said. Conversely, if the Fed withdraws funds too late, inflation could re-heat. As part of its quantitative easing policy, the Fed's balance sheet has swelled to more than $2 trillion from about $869 billion in 2007.

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Fed's quantitative easing timetable is the big $2 trillion question originally appeared on BloggingStocks on Tue, 20 Oct 2009 16:30:00 EST. Please see our terms for use of feeds.

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