Another week, another effort by the Chinese authorities to boost the economy. This time the People’s Bank of China (PBOC) lowered its benchmark interest rate by 0.25 percent to 5.10 percent.
James Nolt’s sense tells him that the likely form of quantitative easing in China is about more than economics, but rather a struggle of power and control.
After sending mixed signals to the market over recent weeks, sometimes stimulating, sometimes impeding markets, China might go all in and officially launch quantitative easing.
The U.S. economy powered its way to a respectable growth rate of 3.5 percent from July through September, outpacing most of the developed world and on track to extend the momentum through the end of the year and beyond.
Major U.S. stock indexes slipped in afternoon trading Wednesday as investors waited for word from the Federal Reserve and mulled over a mixed batch of corporate earnings results.
Peter Schiff is a noted contrarian. He believes the U.S. is in a worse position than growth-challenged Europe since quantitative easing did not work and is akin to “trying to put out a fire with gasoline.” Schiff also believes the U.S. has worse problems than Japan.
President Barack Obama said on Sunday that he accepted Lawrence Summers’ decision to withdraw from consideration for the role of Chairman of the Federal Reserve.