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The Federal Reserve Bank of New York president says some key aspects of how the central bank’s bond-buying stimulus effort works remain mysterious.
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Scooped by Ellie Kesselman Wells |
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The current policy of years of prolonged bond-buying is unprecedented for central bankers.
'Mr. Dudley also said that when it comes time to unwind the Fed’s easy-money stance, uncertainty is a major issue facing central bankers. “There could be unintended consequences” about moving to a more normalized state of monetary policy..."'
Reassuring, no? I have a difficult time believing this was the Fed's prefered course of action. They are not foolish, nor short-sighted. Other than Alan Greenspan, the Fed Board of Governors have few business or political ties, e.g. Ben Bernanke was an economics professor in North Carolina for his entire career. Former president Bush made a good choice with Bernanke.
I wish all the best to Janet Yellen! She is highly qualified. I don't think assumptions should be made, that she is "dovish". We'll see.