While most of the world's central banks are still fighting the last war, Sweden's Riksbank has moved on to the next one. Rather than looking at conventional inflation gauges, the world's oldest central bank is basing its actions on asset-price growth in an effort to prevent the next bubble.
For the 22nd-straight month, the central bank kept its target interest rate at 0% to 0.25%. It made no new asset purchases and no changes to QE2, its $600 billion, eight-month bond-buying program. Housing and hiring are two main areas of concern in a slow-growth economy.
U.S. Federal Reserve launched the second phase of its quantitative easing program, the so-called QE2, saying it will buy up to $600 billion more in long-term U.S. Treasury bonds to help stimulate a U.S. economy that's growing too slowly.
Just about everyone expects the Federal Reserve to announce a bond-buying program with the goal of stimulating the economy. But not many observers think it's a good idea -- and the chorus of critics is only getting louder.
Kansas City Federal Reserve President Thomas Hoenig broke ranks with some of his fellow regional Federal Reserve executives Tuesday, warning against further monetary action as a way to spur economic activity.
The minutes of the FOMC's September meeting show more quantitative easing may be needed "before long," but the bankers delayed any moves while waiting for more data.