More easy money’s on the way

New York Post ^ | 06/20/2013 | Charles Gasparino

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The big story yesterday was supposed to be Ben Bernanke’s signal to the markets about future Fed policy — whether he’ll scale it back, or just go on printing money to keep interest rates super-low and inflate the economy.

But that’s basically a false drama, fueled largely by jittery traders who know their life blood could be in danger when the Fed finally starts to raise rates and roll backits “quantitative easing” program of buying massive amounts of bonds to infuse the economy and the markets with cash.

No, the real story is that Bernanke — and whoever replaces him in coming months — may not be able to afford any major course change.

Sure, we may see some “tapering” of the easy money later this year, as the Fed warned yesterday. Bernanke himself said the money-printing spree could come to a complete end sometime next year if the economy continues to grow.

But this is President Obama’s economy, burdened by rising taxes as well as ObamaCare and other new mandates. That means it needs all the help it can get — and the Federal Reserve is increasingly willing to accommodate these needs.

In other words, easy money may be here to stay, and along with it all the risks it carries — risks like massive inflation and asset bubbles. The president signaled as much earlier in the week when he said in an interview that Bernanke’s days at the Fed are numbered. Obama is sure to tap a successor who’s even more “dovish” on inflation and other risks of easy money.