Fed Easing May Be Boon to Exports, Skidelsky Says: Tom Keene

An export boost related to a weakened dollar may be the “main effect” of the Federal Reserve’s plan to buy $600 billion more in Treasuries under quantitative easing, according to Robert Skidelsky, an emeritus professor of economics at Warwick University in London.

“If quantitative easing comes in, that should drive down the dollar,” Skidelsky said in an interview today on Bloomberg Television’s “Surveillance Midday” with Tom Keene. “That’s going to be its main effect. I don’t think it’s going to have much effect on domestic prices, on the domestic economy, but it will have an effect on the export economy, and that should be beneficial.”