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Some questions for the Fed

Neil Irwin's got five questions for the Federal Reserve as it begins QE2. I think the most important is the second:

2) HOW OPEN TO EXPANSION? It's not just the volume of purchases announced that matters. More important is what the Fed statement says about how ready the central bank is to buy more securities in the future should the economy continue to underperform and inflation undershoot. The Fed will most likely indicate that it will make more purchases as necessary to try to get unemployment down and inflation in line with its target. But the subtleties of that language should be telling.

Related: Quantitative easing in pictures.

By Ezra Klein  | November 2, 2010; 2:43 PM ET
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