Dr. Doom Backs Fed Stimulus, Sees 3.5% 30-Year Yield: Tom Keene
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The Federal Reserve should announce today additional purchases of debt to support the economy, according to Henry Kaufman, the former Salomon Inc. vice chairman nicknamed Dr. Doom for his forecasts.
“There is an important decision that has to be made by the Federal Reserve today,” Kaufman said in a radio interview on “Bloomberg Surveillance” with Tom Keene. “That decision is whether to come in and buy government securities, coupon issues, presumably longer-dated issues, in order to offset the maturing mortgage obligations that are coming due over the extended period of time. The Fed should do that.”