Fed Vice Chairman Donald Kohn on exit strategy: Unwinding unusual policies takes time, so it...

|By:, SA News Editor
Fed Vice Chairman Donald Kohn on exit strategy: Unwinding unusual policies takes time, so it will be based on forecasts rather than current conditions. "Clearly, the present degree of accommodation ... is extraordinary." Fed has the tools, including paying interest on reserves, which will allow short-term rate hikes even with high quantity of assets - but rates to remain low for extended period. Lending programs are winding down with improving conditions, as designed.