Well the Fed had a chance to start the process of slowing down its printing press today and it ducked in a spectacular fashion. He is just gonna keep printing away until he leaves office - that is the easy short term thing to do, but it is creating massive distortions in the financial system and the wider economy and risking a real catastrophe down the road. When you are given the job of running the central bank, it should be about making sure you run sound a sound monetary policy so that capitalism can get on with its business. It is not about printing cash to buy mortgage backed securities and interfering in the government debt markets. Eventually the markets will get sick of this money printing and will turn on the central bank big time.
Seems that the Fed "groupthink" that printing money creates a good economy continues. Full credit however to Esther George who voted against to quote from the release:
"Voting against the action was Esther L. George, who was concerned that the
continued high level of monetary accommodation increased the risks of future
economic and financial imbalances and, over time, could cause an increase in
long-term inflation expectations"
Seems that the Fed "groupthink" that printing money creates a good economy continues. Full credit however to Esther George who voted against to quote from the release:
"Voting against the action was Esther L. George, who was concerned that the
continued high level of monetary accommodation increased the risks of future
economic and financial imbalances and, over time, could cause an increase in
long-term inflation expectations"
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