US Fed’s Lacker says forward guidance could make it harder to withdraw stimulus

Speaking in Stockholm fwd guidance and large balance sheet could make it harder to withdraw stimulus in timely fashion fwd guidance on low rates could reduce economic activity by reducing expectations of future growth credibility requires consistency over time between a central bank’s statements and its subsequent actions unconventional monetary policies make it more likely that the Fed will act too slowly when it’s time to raise rates greater scrutiny may lead public to question legitimacy of central bank governance … >> Read More