Quote Of The Day: QE3 Should Have Been "More Stronger"
A $4 trillion Fed balance sheet in 15 months (40% increase) and guess who is not happy. Yup, you got it.
Nobel-prize winning economist Paul Krugman said that the third round of Federal Reserve asset purchases announced yesterday may be too small of a stimulus for the struggling U.S. economy.
The Princeton University economist, speaking at an event in Sao Paulo today, said that the Ben S. Bernanke’s pledge to buy $40 billion of mortgage debt a month could’ve included a commitment to maintain the asset purchase program for an extended period of time or until the unemployment rate falls to a targeted level.
"The change in tone is important but I would have liked a more stronger [sic] statement,” Krugman said. “It leaves things a bit unclear.”
When one hears such brilliance, what can one say but... Krugman.
And as a reminder...