October 4, 2011
Two top Federal Reserve officials known for their hawkish views on inflation reiterated on Monday their opposition to further Fed monetary policy easing, saying it would do more harm than good.
But the two, Richmond Fed President Jeffrey Lacker and Dallas Fed President Fisher, sketched somewhat different reasons for their views on the eve of Fed Chairman Ben Bernanke’s appearance before Congress on Tuesday.
Lacker said he was primarily concerned with the threat of inflation; Fisher said he was mainly worried that the policy would not work as advertised.
Bernanke was a chief supporter of the Fed’s move last month to try to boost the faltering U.S. recovery by rebalancing the central bank’s securities holdings in a bid to spur borrowing by pushing long-term rates down further.
The $400 billion program, dubbed “Operation Twist,” drew three dissents, including Fisher’s.
This article was posted: Tuesday, October 4, 2011 at 8:16 am