Recent comments by Eric Rosengren, who is the Federal Reserve Bank of Boston President, will surely reignite additional expectations of monetary stimulus, as he commented that the central bank should enact open-ended quantitative easing.
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New York, NY (PRWEB) September 01, 2012
In a recent Investment Contrarians article, editor Sasha Cekerevac notes that, as the economic data continue to deteriorate, this is having a negative impact on the economic forecast for the future. The Federal Reserve is closely monitoring the situation, and with a lack of strong, positive news, Cekerevac believes additional monetary stimulus will occur by the end of the year to avert a continuing diminished economic forecast for the future.
“Recent comments by Eric Rosengren, who is the Federal Reserve Bank of Boston President, will surely reignite additional expectations of monetary stimulus, as he commented that the central bank should enact open-ended quantitative easing,” Cekerevac states, “The wording that open-ended quantitative easing should be the new monetary stimulus policy initiative is quite a change for Federal Reserve standards.”
Cekerevac points out that this policy initiative would be quite bullish for certain markets, such as gold. Even with some doubts that Federal Reserve policy might be on hold following decent payroll data, gold has held up quite well, along with he reports. Gold stocks have also performed reasonably well, says Cekerevac, who believes there is more to come.
As many analysts will continue to decrease their economic forecast for the American economy, there will be increasing calls for the Federal Reserve to continue additional monetary stimulus programs, the Investment Contrarians editor speculates.
But as he also notes, “In an environment in which the economic forecast remains poor for so many years, it does raise concerns that the limits to monetary policy are becoming more apparent. Considering the length of this latest downturn, the Federal Reserve is being hamstrung by fiscal policy over which they have no control.”
Cekerevac advises that investors continue to look for gold to remain strong until the economic forecast begins to change as positive data starts to emerge. He concludes, “Until that time, it’s dangerous to bet against the Federal Reserve.”
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.