Richmond Fed's Lacker: QE 2 Is a Hard Case To Make
I wonder who is going to be put in charge of making that case. Sure hope it isn't NY Fed's Dudley as he's already blown it by whining about inflation being too low. And it better not be Kamikaze Ben Bernanke, he's far too scared by deflation to make an effective case for scaring it off.
Thankfully my second favorite Fedhead hasn't totally lost his way, though saying easy money whores have their work cut out for them is not even close to saying easy money whores are out of their minds for asking in the first place. Just sayin.
Federal Reserve Bank of Richmond President Jeffrey Lacker said a new round of asset purchases by the central bank “would be a hard case to make” with economic growth in line with his outlook.
The Beige Book report released by the Fed today shows “what I expected several months ago,” which is an economic expansion of about 2 percent during the second half, Lacker told reporters in College Park, Maryland. He said he would make up his mind on monetary policy when Fed officials meet in two weeks.
Earning his central banker keep, I believe he shares my opinion that the easy money whores (see also Dudley and Bernanke above) have been way too loose-lipped lately, inserting all kinds of expectations in just about every statement I can remember going back to "we are monitoring the situation" in early 2008 when shit really started going wrong.
Inflation targets (or promises) don't belong in Fed statements. The sheeple just can't handle such a thing and knowing the messengers, it would get screwed up one way or another in the nuance.
“I’m not sure that’s the appropriate place for it, just because you want an objective to be viewed as chiseled in stone and not frequently changed,” Lacker said of putting an inflation target in the statement. He spoke at an economics seminar for the press held by the Richmond Fed at the University of Maryland.
Lacker said he doesn’t have a “lot of confidence that we can engineer through our statements or actions variations in expected inflation at a relatively frequent periodicity.”
Endearing. Still not as ballsy as I like them but maybe he's just taking a break after last year's ridiculously tough battle against the deflationistas. I trust the Lacker I know will make a triumphant return in 2012, just in time for doomsday and that Fed rate hike we'll have waited 4 years for at that point.
I can't wait!