Feud at The Fed: “Horrific Consequences” For Unlimited Quantitative Easing Video
By Josey Wales
BeforeItsNews.com
Wednesday, November 28, 2012
The Federal Reserve should end its aggressive easing campaign, said Richard Fisher, the president of the Dallas Federal Reserve Bank, on Tuesday 11-27-2012
“My personal view is we don’t need to do more,” Fisher said. The Fed’s QE3 plan is open-ended with the central bankers saying it will continue the purchases until there is substantial improvement in the labor market.
The Fed’s plan to purchase $40 billion in mortgage-backed securities and $45 billion in long-term US Treasuries every month for the foreseeable future is now creating internal feuds.
Fisher said the Fed’s Operation Twist program should be allowed to expire on schedule next month. Under Twist, the Fed sells short-term securities and uses the proceeds to buy longer-term securities. “I question its efficacy,” Fisher said, according to the Wall Street Journal.
The Fed will meet on Dec. 11 and 12 and is generally expected by analysts to replace Twist with outright Treasury purchases. Fisher also said the Fed should also end its $40 billion per-month purchases of mortgage-backed securities, known as quantitative easing, or QE3.
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