After the jump, I'll translate for you.Fisher also said he was worried about "what it will look like" if the bond-buying program does boost the economy and rates start to rise, forcing the Fed to incur losses on its multitrillion-dollar portfolio of bonds.
Source: The Economic Times.
Richard Fisher is against the Fed's effort to grow the economy because it might work.
6 comments:
Well said.
So goldman sachs say by 2016 that this program might reach $2T. Remind me again what happens to the buying power of my dollar when this happens? I'd like to know if this is going to affect my gas and food budget. /smirk
Andy Gross
Richardson, TX
Remind me again how this affects the cost of fuel and food....... Goldman Sachs estimates the program will run up to $2T. And the fed won't touch rates until 2016. Brilliant.......
I really feel sorry for savers and the elderly. They really are taking it in the shorts right now.
Andy Gross
Richardson, Tx
"If you want higher rates for savers, the only way out is to do whatever you can to boost the economy, which itself will cause interest rates to rise. If you want to screw over savers, do nothing, let deflation rule the day, and watch interest rates collapse (as they did during the financial crisis)."
-- Joe Weisenthal, Business Insider
Another explanation why QE3 is not a threat for inflation: "Will QE3 Cause Serious Inflation? Not With Economic Prospects So Dismal." by Joseph Stiglitz, recipient of the Nobel Prize in Economics.
Headline: "Housing Starts and Building Permits Surge In September": "That's all great news for the economy. I also think it's a clear sign of the power of QE3."
-- Matthew Yglesias, Slate
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