Related: Quantitative Easing Explained
Nov 16, 2010
New York Fed President Bill Dudley, in one of the first Fed interviews since the central bank’s policy came under attack at the G20 meetings in Seoul, said critics were “off base” to believe the aim of the policy is to weaken the U.S. dollar.
Dudley, in a CNBC interview, directly responded to comments from the German Finance Minister ahead of the G20 meeting last week that the U.S. central bank was working to “artificially lower the value of the dollar.”
“I think that’s very off base because I think that the goal of our policy is a very simple one, to ease financial conditions,” Dudley said. The Fed is “not trying to push the dollar to any particular level. What we’re trying to do through our large-scale asset purchase programs is to remove Treasurys from the market and force private investors into other assets.”
As president of the New York Federal Reserve, Dudley is unique among the 12 district bank presidents because he has a permanent vote on the rate-setting Federal Open Market Committee. Other bank presidents rotate into voting slots. The NY Fed President also serves as vice chairman of the committee, and his views are usually closely aligned with the Fed Chairman.
This article was posted: Tuesday, November 16, 2010 at 10:59 am