(Reuters) – The Federal Reserve’s latest easing program is fiscal, not monetary policy, and does not have much credibility, Philadelphia Federal Reserve Bank President Charles Plosser said on Wednesday.
Treasury debt issuance could undo much of the effect of the Fed’s attempt to lower borrowing costs, known as ‘Operation Twist’, Plosser said.
“It doesn’t have a whole lot of credibility attached to it,” Plosser said in response to an audience question at the Zell/Lurie Real Estate Center at Wharton.
The Fed has taken the entire economy, and our future along with it, into its hands. How much longer are we going to put up with this?