Fed Lacker Would End QE if he Could

Richmond Fed President Jeffrey Lacker told CNBC Thursday that if you made him “dictator” the Federal Reserve would stop its massive bond purchases. He added that evidence is “sketchy” on whether the quantitative easing program has actually helped the nation’s job picture.

“I wouldn’t have gone down this asset-purchase path. I’m in the camp that we should tamper and stop right now,” Lacker said in a “Squawk Box” interview from the 2013 Credit Markets Symposium in Charlotte, N.C. “You have to prepare markets, if it was up to me, if you made me dictator, that’s what I would do.”
(Read More: CNBC Explains Quantitative Easing)

The further the Fed goes down the QE route, the trickier the exit process gets, argued Lacker who said the Fed will err on the side of small steps when tapering purchases. He also pointed out there’s a range of views on that exit strategy, and the Fed’s minutes have done a faithful job of portraying that debate.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza