Federal Reserve policymakers appear less keen to launch a fresh round of monetary stimulus as the U.S. economy improves, according to minutes for the central bank’s March meeting.
The Fed policymakers noted recent signs of slightly stronger growth but remained cautious about a broad pick up in U.S. economic activity, focusing heavily on a still elevated jobless rate.
However, the minutes suggest the appetite for another dose of quantitative easing, so-called QE3, has waned significantly.
What recovery? We have a 15 million “jobs gap.” What growth we have seen is due in large part to unsustainable easing, which has led already to a nasty inflation in gas, food, and commodities. Even worse, a stiff wind from Europe or the Middle East could bring even that to a halt. Meanwhile, ObamaCare and Dodd-Frank continue to throttle job creation.
So the idea that the Fed is backing off of QE3 because the economy has gotten so much better strikes me as just plain weird.
And the good news?