Fed’s Fisher on Treasury purchases

Non voting member Fisher of the Fed is giving his own ‘personal’ opinion on the continuation of the Fed’s purchase plan of US Treasuries in a speech he’s giving on the economy. He does not wish “to expand or extend our purchases of Treasuries beyond the cumulative $300b planned by this fall.” He said “we dare not come to be viewed as a handmaiden to the Treasury. By loosening the anchor we have established for long term inflation expectations, we could create the perception that monetary policy is subject to political imperatives, doing lasting damage to our ability to maintain price stability and restore full employment. I believe we have come as close as we dare to the line between acceptable and unacceptable risk in this regard.”

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