April 25 - Legendary international investor Jim Rogers lashes out against the Fed and its recent economic strategies. Bobbi Rebell reports.
Every step that the U.S. Federal Reserve takes is closely watched by investors- especially what they have to say about a possible third round of extraordinary stimulus, also called quantitative easing, or QE3. The Fed has made it clear it wants to keep interest rates low until at least 2014. That stance and other Fed policies are hurting the U.S. economy according to international investor Jim Rogers. SOUNDBITE: JIM ROGERS, CHAIRMAN, ROGERS HOLDINGS (ENGLISH) SAYING: "What they are doing now is rewarding the people who are the spendthrifts who made serious mistakes at the expense of the savers and investors; this is not good for America. And it's the Federal Reserve that is doing it. So I hope, I hope that there are people in the Federal Reserve who know that they should let the market determine interest rates and they should stop manipulating the currency, the markets the interest rates and everything else." Rogers also blames the Fed for the growing deficit. SOUNDBITE: JIM ROGERS, CHAIRMAN, ROGERS HOLDINGS (ENGLISH) SAYING: "The Fed is making the world much worse. They are making the United States worse. They have borrowed huge amounts of money. Five years ago the Federal Reserve had about $800 billion dollars of government bonds on its balance sheet, now it has 4 times that - of garbage. Somebody has got to pay for that." Rogers goes on to warn he believes the U.S. is headed for another recession by next year- and that it will be worse than last time because of that heavy debt load. Bobbi Rebell, Reuters.