Five months ago, I posed the question: “Has the Fed eased too much?” Basically, I argued that the Fed, having checked deflation, had not eased too much. Now, the question being debated in many quarters is: “Does the Fed need to ease more?” Last weekend at the Fed’s annual Jackson Hole meeting, Chairman Bernanke acknowledged “that economic growth during the first half of this year was considerably slower than the Federal Open Market Committee had been expecting” while the FOMC expected inflation to settle at a level at or below the 2 percent that is…
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