Thiebear Posted September 30, 2009 Share Posted September 30, 2009 http://finance.yahoo.com/news/Officials-Fed-will-need-to-apf-1511169380.html?x=0 WASHINGTON (AP) -- To prevent inflation from taking off, the Federal Reserve will need to start boosting interest rates quickly and aggressively once the economy is back on firmer footing, Fed officials warned Tuesday. "I expect that when it comes time to tighten monetary policy, my colleagues and I will move with an alacrity that, if needed, will be equal in speed and intensity" to when the Fed was slashing rates to battle the recession and the financial crisis, said Richard Fisher, president of the Federal Reserve Bank of Dallas. Although Fisher has a reputation for being one of the Fed's toughest inflation fighters, it marked the second such warning by a central bank official in recent days. Fed member Kevin Warsh on Friday said the central bank will need to move swiftly when the time comes to raise rates. Charles Plosser, president of the Federal Reserve Bank of Philadelphia and also a hawk against inflation, waded into the debate in a speech Tuesday in Easton, Pa., saying the Fed may need to act "well before" unemployment -- now at a 26-year high of 9.7 percent -- returns to normal. The Fed, he said, will need to be on guard "to prevent the Second Great Inflation." Only a few feds, but holy crap would that kill the flatline recovery were experiencing... Link to comment Share on other sites More sharing options...
GhostofSparta Posted September 30, 2009 Share Posted September 30, 2009 I hope they know what they're doing, because hyperinflation from cranking up the printing presses would really suck. Link to comment Share on other sites More sharing options...
JMS Posted September 30, 2009 Share Posted September 30, 2009 http://finance.yahoo.com/news/Officials-Fed-will-need-to-apf-1511169380.html?x=0Only a few feds, but holy crap would that kill the flatline recovery were experiencing... This isn't news. The fed was always inviting inflation to stave off an economic collapse. If the threat of an economic collapse is over, they will certainly have to raise rates.. The only question is when does the light switch get switched. When we are well into recovery, or when recovery beginns? Link to comment Share on other sites More sharing options...
JMS Posted September 30, 2009 Share Posted September 30, 2009 I hope they know what they're doing, because hyperinflation from cranking up the printing presses would really suck. It won't be hyper inflation like Germany experienced after WWI. It will just be return of inflation which has been pretty much dormant since the late 1970's. Jimmy Carter had 21% missery index... unemployment and inflation.... We could return to say a 15-18 missery index. Again primary reason being we judge unemployment differently today than we did in the 1970's. By 1970's metrix we are already at close to 20% unemployment but only report it to be 10%. Link to comment Share on other sites More sharing options...
@DCGoldPants Posted September 30, 2009 Share Posted September 30, 2009 its been what? A year since everything melted down. Its not pretty, but it seems the last admin reacted correctly, and the current one is also. Link to comment Share on other sites More sharing options...
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