Esther George has been the President of the Kansas City FRB since October 1, 2011. She has been a voting member of the FOMC since the start of the year, and has been the lone dissenter during each of the three meetings of this policy-setting committee so far this year. All three times, the minutes noted that she “was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.”
Today, she released the text of a speech (that she was too sick to deliver) in which she continued to ring the alarm bell about the Fed’s QE policies:
Today, she released the text of a speech (that she was too sick to deliver) in which she continued to ring the alarm bell about the Fed’s QE policies:
These unconventional actions also bring their own uncertainty about the outlook for the economy and increasingly appear to be viewed by markets and the public as "conventional." As a result, several sectors in the economy are becoming increasingly dependent on near-zero short-term interest rates and quantitative easing policies.
She went on to mention that security margin debt and leveraged loans are at all-time highs.
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