Forget QE3, Bring On OT2?
By Paul Quintaro
On Friday, the Chairman of the Federal Reserve Ben Bernanke will give his annual Jackson Hole speech. Anticipation is running high that Bernanke will use the opportunity to present a new plan to boost the economy. Last year, Bernanke used his speech at Jackson Hole to lay the groundwork for the second round of quantitative easing (QE2). Since least June, speculation has mounted that the economy would need further stimulus. Many have called for—or at least predicted the inevitability of—a third round of quantitative easing. Yet, at the same time, a QE3 seems increasingly unlikely. Some have argued that QE2 had little positive affect on the U.S. economy. The gains seen in the stock market in the wake of QE2′s implementation have been lost in the recent market turbulence, unemployment has remained persistently high, and though commodity prices have retreated since May, many commodities in the agriculturalComplete Story »