Einhorn’s Greenlight Says Fed’s Quantitative Easing Won’t Work

David Einhorn’s Greenlight Capital Inc. said the Federal Reserve’s plan to buy an additional $600 billion of U.S. Treasuries through June won’t stimulate the economy, and helps explain the rally in gold to record levels.

The Fed’s so-called quantitative easing announced Nov. 3 will probably result in rising prices of basic goods for consumers and businesses, curtailing economic growth, the New York-based hedge-fund firm said in a Nov. 1 letter to clients, a copy of which was obtained by Bloomberg News.