So FOMC will have to think about options

  • Sees unemployment at about 7% by year end
  • Little nervous about low inflation
  • QE is the way to go but QE in Europe presents a problem
  • Pretty clear QE has effects on financial markets
  • Balance sheet of ECB is quite large
  • Doesn’t think Fed that close to talking exit strategy
  • Bernanke does a good job of representing committee
  • Will be off to Tokyo next week.