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Dissension at the Top: Fed's Plosser Slams QE3 - Markets take a dive

WASHINGTON (MarketWatch) — One of the leading hawks on the Federal Reserve slammed the central bank’s new asset purchase program on Tuesday, saying that it wasn’t necessary, wouldn’t work and is risky.

“We are unlikely to see much benefit to growth or employment from further asset purchases,” said Charles Plosser, the president of the Philadelphia Fed Bank, in a speech to financial market trade groups in Philadelphia.

Plosser’s comments are not necessarily a surprise because he is one of the leading hawks on the Fed who have opposed Fed Chief Ben Bernanke’s unconventional monetary policy.

Continure reading at -MarketWatch

Related: Markets take a dive after Plosser comments

NEW YORK (MarketWatch) — U.S. stocks turned lower Tuesday, positioning the S&P 500 index for its lowest close in two weeks, after a Federal Reserve member offered a negative take on the latest Fed move.

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QE To Have Major Economic Impact On Western Financial World

September 25, 2012, at 2:11 pm
by Jim Sinclair in the category General Editorial | Print This Post | Email This Post

My Dear Friends,

For years we took major criticism for saying that QE to infinity was guaranteed. Recently we took major criticism for even saying QE itself was possible. Now we take criticism for saying QE to infinity is going to have a major impact economically in the entire Western financial world.

All the talking heads and writers are on a tear saying QE will do nothing, emphasizing deflationary scenarios both from within the community to financial TV. Those that take that position are raving morons.

The markets today are full of normal manipulation based on the MSM disinformation that QE to infinity is a hollow tool. It is dynamite and will have an impact of historical dimensions, but not necessarily the ones the morons expect.

Keep your gold investments. Gold is going to $3500 and beyond, about which there is no question. Stand tall. Don’t trade, and shut off the gold naysayers sensationalists we have battled from $248 to today.

This is nothing different from the disinformation of early 1979. The Philadelphia Fed president is an example of MSM disinformation.

Regards,
Jim

Cyril's picture

Fed's exit strategy ... "Exit" ?

Quoting the article (bottom line) :

"Plosser said the Fed's exit strategy has been made even more complicated and risky by QE3."

My question :

Fed's exit strategy ... "Exit" ?

Exit out of WHAT, EXACTLY ?

Sorry, but that's still unclear to me.

Here's Mr. Plosser's bio, btw :

http://www.federalreserve.gov/aboutthefed/bios/banks/pres03.htm

'HTH,

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius