Good FT piece by PIMCO's Mohamed El-Arian
(registration required) on the Fed's announcement
today of yet another round of quantitative easing. Key sentences from El-Arian:
Through both its actions and what it refrained from doing, the Federal Reserve confirmed on Thursday that it is operating in policy
purgatory: incapable of delivering the good economic outcomes it desires, yet
unable to exit from an experimental policy stance that risks a widening array of
collateral damage and unintended consequences.
...Like the ECB, its Frankfurt-based European counterpart, the Fed cannot by itself
secure the results that so many desire – high growth, robust job creation and
financial stability. At best, it can keep buying time in the hope that other
government entities will get their act together....