Effectiveness of QE3
While it is a new move for the Fed to develop an open-ended quantitative policy, I am concerned with the actual impact that this round of QE3 could make on the economy. I believe the Fed is taking more risk than the opportunity. When we look at the economy and try to figure out the factor that is holding back consumption and leading high unemployment, it does not appear that more easing would change the situation. Indeed, lower interest rates, cheaper money can promote borrowing, but I don't see how this solves the problem.