“The Federal Reserve’s loose monetary policies have been “hideous” for recovery and will do more harm to the economy than good, says investment banker Christopher Whalen.
“Since the downturn, the Federal Reserve under Chairman Ben Bernanke has cut interest rates to near zero and pumped $2.3 trillion into the economy via buying bonds from banks to stimulate the economy.
The Fed has also reshuffled its Treasury portfolio to even further ensure long-term interest rates stay low.
Critics say such policies will only fuel inflationary pressures down the road and haven’t created more investment and hiring that they were supposed to do in the first place.
Plus the rise in food and oil prices, critics also charge, stems in part from all of that excess liquidity finding its way into commodities markets.
“That’s a hideous, hideous policy mix because it hurts the people in our economy with the lowest incomes. They see it at the grocery store, they see it in inflation for basic goods,” Whalen tells Newsmax.TV in an exclusive interview.
“We need to have a much more honest conversation about the tradeoff between inflation and real growth,” says Whalen, co-founder and vice chairman of Lord, Whalen LLC, parent of Institutional Risk Analytics, the Los Angeles-based provider of bank ratings, risk management tools and consulting services for auditors, regulators and financial professionals….”
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