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| Lloyd Blankfein - Goldman Sachs |
"Under our forecast of high (and gradually rising) unemployment coupled with renewed disinflation, further monetary policy easing would be appropriate."
It was Rick Perry who in his bumbling manner suggested that the Federal Reserve Bank's policies were treasonous - weakening the dollar is the literalist's idea of betrayal. But Goldman Sachs - the most successful investment bank - sees depression clouds on the horizon - rising unemployment, with high rates becoming "structural". They call on the Fed to be aggressive and to remember both its full employment and its low inflation mandate. This is anathema in the Tea Party Congress. Hopefully Ben Bernanke has the political skills to get his Open Market Committee to overcome their biases and act effectively, committing to low interest rates until unemployment gets down to 7%, and pumping a lot of money into the system. For their wonks only analysis click on the hypertext above. - GWC
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