Fed nerves will extend past Summers

According to Al Wojnilower, US growth will likely remain at 2 per cent for the next year or more. No wonder hardliner Larry Summers incited fears as potential head of the Fed.

This morning’s sharp rise in the Australian dollar against the US currency is not welcome news for the new government. But it is a reminder that the US has, so far, not responded as vigorously to quantitative easing as was expected. And so with Larry Summers no longer in the running to be US Federal Reserve Bank chief (Summers, one hawk down, September 16), quantitative easing may continue longer than many expected (Why the Fed's wind-back is not irreversible, September 16) – hence the fall in the US dollar.

To understand why the US suddenly became wary of the hardline Summers, the latest remarks of the veteran US economist Al Wojnilower are helpful.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles