James Cooper
The Fiscal Times
via Business Insider
3/29/2011
The voices of dissent within the Federal Reserve are growing louder, fueled by concerns that current monetary policy could boost inflation by keeping interest rates too low for too long in a growing economy.
In recent weeks at least four Fed officials have suggested that policymakers need to review the current round of quantitative easing program, or QE2.
Their comments are raising questions in the financial markets about whether the Fed may cut short its plan to purchase $600 billion of Treasury securities by the end of June, as well as more fundamental questions about how and when the Fed will start to lift interest rates.
The latest discord comes from St. Louis Fed president James Bullard, speaking in Marseille, France, on Saturday. “If the economy is as strong as I think it is, then I think it may be reasonable to send a signal to the markets that we are going to start withdrawing our stimulus, and I’d start by pulling up a little bit short on our QE2 program.” Bullard told reporters, according to Bloomberg News.
The article, with graphics, continues at Business Insider.
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