1. Richmond Federal Reserve President Jeffrey Lacker, who
voted against the FOMC's last policy decision, remains
uneasy:
Reuters: - "I do not believe that tying the federal funds rate to a specific numerical threshold for unemployment is an appropriate and balanced approach to the FOMC's price stability and maximum employment mandates," he said in a statement, referring to the Federal Open Market Committee.
Focusing on MBS purchases pushes capital into the housing
sector - and according to Lacker should be left to the
federal government, not the central bank.
Reuters: - "Deliberately tilting the flow of credit to one particular economic sector is an inappropriate role for the Federal Reserve," he said, adding that trying to influence credit allocation within the economy was a function of fiscal policy.
2. Dallas Fed President Richard Fisher calls the latest FOMC
action a "Hotel California" policy (with respect to the
expansion program, you can "check out anytime you like, but
never leave").
Link to video:
