The FOMC decision to buy more Treasuries has elicited responses unlike the Fed has ever seen I believe, from not only in defense of it by Bernanke himself but from overseas officials who don’t like it. Non voting member Fisher is chiming in today in a speech and he doesn’t like it either. “Liquidity and abundant money are not the binding constraints on the economic activity we wish to see…The remedy for what ails the economy is, in my view, in the hands of the fiscal and regulatory authorities, not the Fed. I could not state with conviction that purchasing another several hundred billion $’s of Treasuries would lead to job creation and final demand spurring behavior. But I could envision such action would lead to a declining $, encourage further speculation, provoke commodity hoarding, accelerate the transfer of wealth from the deliberate saver and the unfortunate, and possibly place at risk the stature and independence of the Fed.”

Category: MacroNotes

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7 Responses to “The Fed’s Fisher disagrees with Bernanke”

  1. rip says:


    Put this one in a time capsule.

    Just when you think the elites are heartlessly steamrolling, you get a message like this.

    There may be some hope yet.

  2. says:

    Non-voting member. Akin to the 1 million financial bloggers that get it. Lot of good this will do us.

  3. pintelho says:


    Maybe Bernanke is playing poker with the Congress? Maybe he feels that if he and his gang decide that they want to debase the currency until the Congress makes a real jobs program that puts us on a sustainable path…he realizes that he can pump the deficit higher and higher…knowing that Congress is more and more on the FUBAR side of the spectrum without any power to do anything about the fed or deficit…unless they get serious about the fiscal side of things…

    granted…there is a bit of an unease feeling this idea that Unka Ben is playing some high stakes poker with our money…

    ends justify the means? i dunno…but we will find out.

  4. Captain Jack says:

    Just wait until we get a full-blown housing double dip. Equities crushed, dollar debased, commodity inputs rising, unemployment worsening… full blown inflationary recession conditions. They’ll be screaming for Bernanke’s head on a pike.

  5. rob says:

    “Non voting member” His comments and a $1.25 will get you a Coke… well at least today it will. It will be $2.50 a Coke in no time. Ironic it’s the non voting members that are so loquacious against QE.

  6. franklin411 says:

    This statement is coming from the same boys who claimed that the Stimulus wouldn’t work (it did), that Cash for Clunkers and the Housing Credit would destroy these markets (they didn’t), that the Bond Bullies would beat the US to death for the crime of keeping children from starving (they didn’t), and that QE1 was certain to produce hyperinflation (it didn’t).

  7. Captain Jack says:

    Right on good buddy. Whatever you’re smoking, it must be primo stuff…