Not to mention these CNBC headlines today:
August 31 (CNBC) — The U.S. economy does not need a second fiscal stimulus package, instead the government should cut spending over the next two years, according to a survey of business economists released on Monday.
Fed’s Profit from Crisis Loans is $14 Bn
By Sara Murray
August 31 (WSJ) — Business economists are split on whether the Federal Reserve’s massive infusion of credit into the economy will lead to inflation in the next couple of years.
Half of 266 members of the National Association for Business Economics surveyed in August said the Fed’s decisions to increase the money supply won’t lead to inflation in the next few years, the NABE said Monday. Some 41% disagreed, though, citing “lagged effects of policies now in effect,” “monetization of the debt” and “ineffective exit strategy” as their primary concerns.
Recent debate over the Fed’s strategy for reducing its large holdings of government bonds and mortgage-backed securities has centered on timing. If the Fed waits too long to bring the programs to a close, the economy runs the risk of inflation. But if it attempts to wind them down too soon, while the economy is still weak, it could hinder the recovery.
As for U.S. fiscal policy, 35% said it was “about right,” the highest percentage to say so since March 2008. But 50% of the economists surveyed said fiscal policy was too stimulative.