Fed Pres Evans chiming in on exit strategies
Following the speech by Fed Pres Bullard Tuesday on the Fed’s ‘exit strategies’ where the discussion was more on how they will unwind their different programs rather than when, Fed Pres Evans is adding his thoughts to the debate. I want to first say that setting a time period is of course difficult due to the uncertainty with the economy but why can’t they come up with economic benchmarks by which to measure against. After a speech given on “The Credit Crisis and Policy Actions,” Evans said in a Q&A on the Fed’s exit strategies that the internal discussions are “to see how the balance sheet will evolve in different scenarios” and “not about any particular time frame.” Thus, as Bullard said yesterday, they seem to be relying on their “judgement calls.” I raise this because their success or lack thereof on getting the timing right will have a direct and dramatic impact on any recovery we will see.
July 1st, 2009 at 7:15 pm
Given the poor quality of the Fed’s “judgement calls” leading up to the bubblicious financial crisis, I am not at all confident they will be able to execute with the perfect timing that will be required to execute a proper exit strategy.
Hyper inflation is in our future. It is just a matter of “when.”
July 1st, 2009 at 7:54 pm
These assclowns introduced a new “facility” today!! It’s like I said yesterday about Bullard’s comments, it’s all lip service… They have shown that when they start to talk something either up or down then you need to be highly suspect of it going in the opposite direction.