Fed Governor Warsh says would need to be convinced that the benefits of expanding the Fed’s balance sheet outweigh the costs. He thinks the Fed funds rate is the dominant policy tool going forward.
Sounds like he’s reluctant to jump aboard AEP’s QE2…
Also crossing the wires is word that 100 banks will be included in the next round of European stress testing, including 15 German banks. Three German banks were included in the first round. Buba will meet with the German banks on Wednesday. Get ready for a major rumor mill at mid-weak…
