Wednesday, June 5, 2013

Volcker Weighs In on Limits of Fed's Easy Money Policies

Former Federal Reserve Chairman Paul Volcker on Wednesday waded into the debate over when to reduce today's ultra-easy U.S. monetary policies, contending that the benefits of bond buying are "limited and diminishing" and warning that central banks are too often late in removing stimulus.

Volcker, who led the U.S. central bank's aggressive battle against inflation in the 1970s, said the decision to adjust policy will come down to good judgment, leadership and "institutional backbone" in the face of political pressure.

"Here and elsewhere, the temptation has been strong to wait and see before acting to remove stimulus and then moving toward restraint," Volcker, 85, told the Economic Club of New York.

READ MORE:  http://www.cnbc.com/id/100773995

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