Federal Reserve Chairman Ben Bernanke may be willing and able to provide more monetary stimulus for the U.S. economy, but the more effective medicine—fiscal aid out of Washington—isn’t in the wings, say economists.
The Federal Reserve is taking too dim a view on the U.S. economy and hasn't conveyed the proper message about what its role will be in the future, Philadelphia Fed President Charles Plosser told CNBC.
This time last year, Federal Reserve Chairman Ben Bernanke used a speech in Jackson Hole, Wyoming to hint that he was about to unleash a second round of unconventional measures to get more monetary liquidity into domestic the economy.
"I'd be very surprised if there was a radical QE3," Glenn Hubbard told CNBC Wednesday. "The risk management argument really isn't there. There are data to be learned about the economy. The affect of a QE3 would be relatively modest, and it might risk raising inflationary expectations, so I doubt it."