By Paul R. La Monica @CNNMoney
With long-term bond rates as low as they are, is there really a need for the Fed to try QE3 to push them down further?
NEW YORK (CNNMoney) — The best you can say about "The Godfather: Part III" is that Sofia Coppola recognized her limitations and now spends more time behind the camera than in front of it. "Superman III" proved that Richard Pryor was no Gene Hackman.
And "Return of the Jedi?" I defer to Dante from "Clerks." All that had was a "bunch of Muppets."
The third time is rarely the charm in Hollywood. But don’t tell that to investors and central bankers who are loudly calling on the Federal Reserve for a third round of bond buying to help stimulate the economy.
Fed vice chair Janet Yellen, Fed governor Daniel Tarullo and NY Fed president William Dudley have all hinted in speeches recently that another so-called quantitative easing program, or QE3, could be possible.
Why? The Fed has already pumped trillions of dollars into the economy with the first two renditions of QE. It has left its key interest rate near zero since December 2008 and has pledged to keep rates low until the middle of 2013.
More here: QE3? Investors (and Fed) addicted to liquidity — The Buzz – Oct. 26, 2011.
