Hoenig: QE2 adds to uncertainty with few benefits market pulse Oct. 12, 2010, 11:45 a.m. EDT WASHINGTON (MarketWatch) -- Thomas Hoenig, the president of the Kansas City Federal Reserve Bank, repeated his opposition to another round of bond buying by the central bank. In a speech to the National Association of Business Economists, Hoenig said more quantitative easing only adds to the uncertain climate in financial markets with only few offsetting benefits. He called quantitative easy a "very risky strategy" for the Fed because there would be "no idea" at what level inflation might settle as a result. Hoenig, a voting member of the FOMC this year who has dissented at all six meetings to date, repeated his call for the Fed to lift interest rates off the zero level and to scrap its pledge to keep rates low for an "extended period." http://www.marketwatch.com/story/hoenig-qe2-adds-to-uncertainty-with-few-benefits-2010-10-12
Seems all the Fed's strategies are of the risky, "We don't know the outcome, but we're willing to try anything... regardless of whether it torpedoes the country" type.
QE2 will result in 1970s Stagflation. But worse, At least 1970s stagflation was the result of Labor costs in the US rising and slow growth. Now it will be 21st century Stagflation, low growth but rising prices due to higher import prices not Wages increasing in the US.
I believe the Dallas Fed President is also skeptical of the current actions and isn't a Bernanke yes-man, either.
Fischer is sharp as a tack and stauchly pro-business. He knows it (QE) is the wrong course and has hinted at such.
What was the month/year when QE1 started? Also, after QE1, we ends up where we are today. So does QE1 really works? And since it doesn't seem to work, why would QE2 works? And how long would the effect of QE2 be, before the market drops again? As we are in way over-bought level that I most surely don't want to go in
More QE, $ goes down, food and energy prices go up, Arabs become rich, Americans become poor. Maybe this is what they want
they are using rhetoric to boost the market, bluffing about qe 2, market is rallying without it,good trick