by George Washington
Many speculate that the Fed will launch QE3 next week.
But independent economics and financial experts say this would hurt – rather than help – the economy.
Dallas Federal Reserve Bank president Richard Fisher said:
I firmly believe that the Federal Reserve has already pressed the limits of monetary policy. So-called QE2, to my way of thinking, was of doubtful efficacy, which is why I did not support it to begin with. But even if you believe the costs of QE2 were worth its purported benefits, you would be hard pressed to now say that still more liquidity, or more fuel, is called for given the more than $1.5 trillion in excess bank reserves and the substantial liquid holdings above the normal working capital needs of corporate businesses.