Roubini Predicts Quantitative Easing Will Be Resumed

Roubini, an NYU economics professor, predicts quantitative easing goes on.

From MoneyNews:

The Federal Reserve is likely to resume quantitative easing after reversing it some in recent months, says star economist Nouriel Roubini.

The Fed expanded its balance sheet by leaps and bounds to fight the financial meltdown starting in 2008, buying securities and making loans on very easy terms.

That move is known as quantitative easing.

“Chances are they (Fed officials) are going to resume quantitative easing, because if they’re going to have a back-up in mortgage rates or in 10-year Treasury yields, the last thing the Fed can afford in an election year is have a crowding out of the housing recovery.”

“The Fed is (likely) going to eat its own words and resume quantitative easing directly or indirectly,” Roubini said.

http://moneynews.com/StreetTalk/Roubini-Fed-Resume-Quantitative/2010/04/23/id/356656