Adding the overall gloomy picture of how Americans view the economy, the vast majority are concerned about inflation according to a new Rasmussen Report.
Most Americans remain concerned about inflation but are beginning to express a little more trust in the Federal Reserve Board’s ability to control it.
A new Rasmussen Reports national telephone survey finds that 76% of American Adults are at least somewhat concerned about inflation, including 48% who are Very Concerned. Twenty-two percent (22%) are Not Very or Not at All Concerned.
This feeling comes as the Federal Reserve is considering even more quantitative easing, or printing of money, for the economy in Obama's second term.
Managers believe that Barack Obama’s re-election will be followed by more quantitative easing, as he continues to pursue policies of central bank intervention into the global crisis.
Jack McIntyre, global bond portfolio manager at Legg Mason, said that the Fed’s current programme of $40bn (£25bn) a month of quantitative easing could more than double during Mr Obama’s second term.
“We have reduced our US dollar exposure due to quantitative easing and we think president Obama will continue buying long-dated treasuries. The $40bn programme could turn into $85bn.”
Not surprisingly, gold is on the rise again.