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Richmond Fed President Jeffrey Lacker has explained that he opposed QE3 because it's unlikely to...

  • Sunday, September 16, 2012, 5:40 AM ET
    Richmond Fed President Jeffrey Lacker has explained that he opposed QE3 because it's unlikely to boost growth, but if it does, it will lead to higher inflation. The FOMC's sole dissenter added that any improvement in unemployment appears to be held back by impediments that monetary policy can't offset. Finally, buying MBS's, or providing credit to particular economic sectors, "is an inappropriate role" for the Fed and is "the province of the fiscal authorities."
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This news story has 6 comments:

  •  
    Finally, a sensible Fed Member speaks out. Ben, it's not working and doing the same thing over and over again is not going to change the outcome. In the mean time you are bankrupting those attempting to live off of fixed incomes and savings accounts. Give it a rest.
    16 Sep 2012, 07:03 AM Reply Like
  •  
    I suspect QE is more a product of the Fed's balance sheet than a policy designed primarily to boost growth.

    I do like Mr. Lacker's comment "that any improvement in unemployment appears to be held back by impediments that monetary policy can't offset."

    Apparently he agrees with Mr. Bernanke that our do-nothing political leadership is the major stranglehold on potential growth and resolution of the country's ills.
    16 Sep 2012, 08:09 AM Reply Like
  •  
    Yes, Ben just buying time until after the election. He has to avoid Great Depression II on his watch. Obama will probably win, and perhaps there will thus be pressure for the Repubs to finally get moving and stop blocking the jobs and infrastructure bills at last. With borrowing incredibly cheap, now is the time to fix our aging electric power grid, highways, bridges, convert vehicles to natural gas, etc..there has never been a better time...the deficit problem will fix it self once the economy really gets going, and people get employed and start spending money...
    16 Sep 2012, 10:01 PM Reply Like
  •  
    "Finally, buying MBS's, or providing credit to particular economic sectors, "is an inappropriate role" for the Fed and is "the province of the fiscal authorities."

    Funny there was a time when the "Plunge Protection Team" was in the realm of the tin-hat brigade but now you have to wonder. If they have publicly announced this who knows what they have done in private?

    Maybe there is something to that auditing the FED idea that's floating around.
    16 Sep 2012, 11:15 AM Reply Like
  •  
    The fed has been audited to some degree. http://bit.ly/RX7Dzx
    16 Sep 2012, 12:50 PM Reply Like
  •  
    Sanity is not permitted in the new Krugmanistic world.
    Bravo President Lacker for not being a slacker and a rubber stamp for the ridiculous. DL
    17 Sep 2012, 12:39 AM Reply Like
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