Daily Economic Indicator: Fed's QE2 helped economy, but only so much

04/25/2011 | Economist (free content), The

The Federal Reserve created an unnecessary opportunity for criticism when it picked a number for its Quantitative Easing 2 initiative -- the purchase of $600 billion worth of bonds -- rather than stating a policy objective, according to The Economist. QE2 did the U.S. economy some good but not as much as some people hoped. "The Fed chose a direction rather than a destination, and when its action left it short of the destination, it opened the door to criticism that the direction was wrong, when in fact it may simply have traveled an insufficient distance (perhaps thanks to unexpected headwinds)," the magazine noted.

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Economist (free content), The

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