globaleconomicanalysis.blogspot.com / By Mike “Mish” Shedlock / Friday, December 14, 2012 11:06 AM
At least one Fed governor understands the Bernanke Fed’s hyper-accommodative monetary policy has no exit.
Today on CNBC “Squawk Box”, Dallas Fed governor Richard Fisher complained Fed Risks ‘Hotel California’ Monetary Policy.
Dallas Fed President Richard Fisher told CNBC that he’s worried the U.S. central bank is in a “Hotel California” type of monetary policy because of its “engorged balance sheet.” Evoking lyrics from the famous song by The Eagles, he said he feared the Fed would be able to “check out anytime you like, but never leave.”
Fisher said on “Squawk Box” that he argued against revealing the new inflation and unemployment targets set by the Fed this week, saying he’s worried that the markets will become “overly concerned” with the thresholds.
Fisher would not comment on any contingency plans at the Fed should Republicans and President Barack Obama fail to strike a deal to prevent the automatic tax increases and spending cuts from taking effect in the new year.
“What you see is what you get here,” Fisher said. “We have a hyper-accommodative monetary policy here … cheap and abundant money that the Fed has made widely available.”