By Steven K. Beckner
ATLANTA CITY (MNI) – Atlanta Federal Reserve Bank President Dennis
Lockhart said Monday that he is skeptical about whether or not a third
round of quantitative easing would help the economy, but said he’s open
minded on the subject.
Lockhart will be voting on the Fed’s policymaking Federal Open
Market Committee this year and defended the Fed’s recent foray into
housing policy.
“I harbor some skepticism whether a new round of quantitative
easing would be highly effective,” Lockhart told reporters, but added,
“I am not foreclosing that as an option.”
“I’m keeping my mind open to that,” he continued, but “it will
depend on conditions as it always does.”
A white paper released by the Fed last week explored a number of
housing options, including making it easier for people to refinance
their homes and converting foreclosed properties to rental units.
“I don’t view that as over-stepping our bounds,” he said, adding,
“In a way, we are communicating that there is not a monetary policy fix
per say.”
** Market News International **
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