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By Carmen Reinhart and Vincent Reinhart
Published: November 4 2010 22:31 | Last updated: November 4 2010 22:31
Two campaigns ended this week. In one, a hostile electorate reshaped Congress, to create a foil to Barack Obama's policy ambitions. In the other, the Federal Reserve has spent the past few months trying to convince investors that it retains relevance even after its policy rate has lingered at zero for two years. Now the campaign season is over, further swift actions are needed to boost the fitful recovery of the American economy.
All campaigns are full of inflated promises. The build-up to the Fed's latest quantitative easing has been no exception. The problems overshadowing expansion will not be lifted by inflating the Fed's balance sheet. In particular, the hard job of addressing the unresolved problems in the mortgage market remains unaddressed.
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