from Zero Hedge:
The war of words continues, this time with Dallas Fed's Fisher. More quotes from the fourth spoke in the Kocherlakota, Plosser, Hoenig, hawk sanity quadrangle. In his just released speech we read this stunner: "In my darkest moments, I have begun to wonder if the monetary accommodation we have already engineered might even be working in the wrong places." Aside from adding Fisher to the Shirakawa, Hildebrand suicide watch, it is notable that the Fed is finally doubting the actions of the Fed, and realizing it is creating neither employment, nor moderate inflation, but just bubbles, bubbles and more bubbles. And here is why Fisher may soon be looking to resign: "A great many baby boomers or older cohorts who played by the rules, saved their money and migrated over time, as prudent investment counselors advise, to short- to intermediate-dated, fixed-income instruments are earning extremely low nominal and real returns on their savings. Further reductions in rates earned on savings will hardly endear the Fed to this portion of the population." Hardly indeed. And next time it won't be the Pentagon.
More highlights:
- Not clear that economic conditions warrant further 'deployment of Fed's arsenal'
- Further Easing Rrisks Driving Down Returns For Savers
- Efficacy of further accommodation using non-conventional policies not clear
- Much debate still at Fed on pros and cons and costs and benefits of further accommodation
- Economy barely cruising above stall speed
- Removing tax and regulatory uncertainties would make any further monetary easing unnecessary'
