Wednesday, July 1, 2009

Does Janet Yellen Want Be Ben Bernake's Replacement?

It sure sounds like it.

I have been following the speeches of the San Francisco Fed president for years, never before has she come out so in favor of printing money.

Bloomberg reports:

Federal Reserve Bank of San Francisco President Janet Yellen said the prospect that policy makers will leave the benchmark U.S. interest rate near zero for the next several years is “not outside the realm of possibility.”

Given the recession’s severity, “we should want to do more. If we were not at zero, we would be lowering the funds rate.”

Nevertheless, the threat of another financial shock, such as one from falling commercial real-estate prices, is “high on my worry list.”

Responding to audience questions after her speech, Yellen said... The Fed “won’t hesitate” to withdraw the record stimulus it has put in place, when necessary, Yellen said. “If anything, I’m more concerned that we will be tempted to tighten policy too soon, thereby aborting recovery.”
Sure sounds to me like she is signalling Obama that she has no problem printing money.


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