Results 1 to 8 of 8

Thread: Economists Warn Fed Risks Losing Control Amid Budget Deficits

  1. #1

    Default Economists Warn Fed Risks Losing Control Amid Budget Deficits

    Four economists, including a former Federal Reserve governor who has co-written research with Chairman Ben S. Bernanke, warned that losses from the central bank’s more than $3 trillion balance sheet could lead to the Fed losing control of monetary policy.

    “The combination of a massively expanded central bank balance sheet and an unsustainable public debt trajectory is a mix that has the potential to substantially reduce the flexibility of monetary policy,” the economists write. “This mix could induce a bias toward slower exit or easier policy, and be seen as the first step toward fiscal dominance. It could thereby be the cause of longer-term inflation expectations and raise the risk of inflation overall.”

    The conclusion from economists, including Frederic Mishkin, a governor at the central bank from 2006 to 2008 and an academic collaborator with Bernanke before that, will be presented at the U.S. Monetary Policy Forum in New York. Their paper serves as a high-profile warning to an audience including Boston Fed President Eric Rosengren, Fed Governor Jerome Powell and St. Louis Fed President James Bullard.

    Read Latest Breaking News from
    "Integrity means having to say things that people don't want to hear & especially to say things that the regime doesn't want to hear.” -Ron Paul

    "Bathtub falls and police officers kill more Americans than terrorism, yet we've been asked to sacrifice our most sacred rights for fear of falling victim to it." -Edward Snowden

  2. Remove this section of ads by registering.
  3. #2


    losses from the central bank’s more than $3 trillion balance sheet could lead to the Fed losing control of monetary policy.
    Does this mean we have to bailout the Fed too? Of course we will have to borrow the money from them in order to bail them out.
    Last edited by Henry Rogue; 02-23-2013 at 11:03 PM.
    Quote Originally Posted by BuddyRey View Post
    Do you think it's a coincidence that the most cherished standard of the Ron Paul campaign was a sign highlighting the word "love" inside the word "revolution"? A revolution not based on love is a revolution doomed to failure. So, at the risk of sounding corny, I just wanted to let you know that, wherever you stand on any of these hot-button issues, and even if we might have exchanged bitter words or harsh sentiments in the past, I love each and every one of you - no exceptions!

    "When goods do not cross borders, soldiers will." Frederic Bastiat


  4. #3


    It is going to happen - we just don't know when.
    Out of every one hundred men they send us, ten should not even be here. Eighty will do nothing but serve as targets for the enemy. Nine are real fighters, and we are lucky to have them, upon them depends our success in battle. But one, ah the one, he is a real warrior, and he will bring the others back from battle alive.

    Duty is the most sublime word in the English language. Do your duty in all things. You can not do more than your duty. You should never wish to do less than your duty.

  5. #4


    Quote Originally Posted by Pericles View Post
    It is going to happen - we just don't know when.
    "Life, Liberty and the pursuit of Happiness"

  6. #5


    Hmmm, another large contributing factor as to why the price of gas shot up 50 cents a gallon in two weeks. Back over 4 bones a gallon here...
    1776 > 1984

    The FAILURE of the United States Government to operate and maintian an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    You are Ron Paul's Media!

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  7. #6


    it's too late now you morons!

  8. #7


    Just let the DoD bail um out. Sooner or later they will figure out which mattress they "misplaced" that 3.5 Trillion under.


  9. #8


    "I have never let my schooling interfere with my education." - Mark Twain

    "Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself."
    - Mark Twain

    "I'm Ron Paul, I'm a Congressman from Texas serving in my tenth term, I am the champion of the Constitution." 05/03/07 - revolution restarts

Similar Threads

  1. Fed Signals Possible Slowing of QE Amid Debate Over Risks
    By sailingaway in forum U.S. Political News
    Replies: 3
    Last Post: 02-21-2013, 01:07 AM
  2. Replies: 1
    Last Post: 10-13-2010, 10:46 PM
  3. Economists Warn Another Financial Crisis on the Way
    By cajuncocoa in forum Economy & Markets
    Replies: 3
    Last Post: 03-03-2010, 11:36 AM
  4. Replies: 1
    Last Post: 07-28-2009, 08:58 PM
  5. Replies: 1
    Last Post: 12-04-2008, 05:29 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts