It looks like at least one of my predictions might come true:
Eric Rosengren, the head of the Federal Reserve Bank of Boston, is issuing an unusual public plea to his colleagues in Washington, urging the nation’s central bankers to ignore election-year pressures and do more to jump-start the muddling economy.
Less than a week after Federal Reserve policy makers elected not to take new steps to stimulate the economy, Rosengren in an interview added his voice to a handful of dissenters, saying the central bank has to act at its next meeting in September to revitalize the economy. The Fed should not worry, he said, if the move is seen as influencing the presidential election.
I had theorized that there would not be any “official” Quantitative Easing (formal inflation, for those who speak actual English) because of the election-year pressures. If Rosengren’s complaint is any indication, my prediction is spot-on since he is lamenting the absence of any easing in light of political pressures. We shall see, of course, but I’m still feeling good about this.