EconomicGreenfield

The September 27-October 3 2010 issue of Bloomberg BusinessWeek has an interesting story titled “Thomas Hoenig is Fed Up.”

The story chronicles various views of Thomas Hoenig and how these views differ from those of others prominent within The Federal Reserve.

I found one line, referring to Hoenig’s views, particularly noteworthy given current (and likely future) Federal Reserve policies and reactions to them:

“The hard truth, in his view, is that there just isn’t much more the Fed can do to help, and we all ought to admit that.”

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A Special Note concerning our economic situation is found here

SPX at 1165.15 as this post is written

On September 9 The Wall Street Journal had various people respond to the question of “What Should the Federal Reserve Do Next?”

Among the various responses, I found this excerpt from Allan Meltzer’s response to be most interesting:

“In “A History of the Federal Reserve,” I concluded that the principal mistakes the Fed has made have resulted from giving excessive attention to current events and forecasts of highly uncertain near-term developments. By focusing on the short-term, the Fed neglects the longer-term consequences of its actions. The transcripts of FOMC show that the members are paying little attention to medium- and longer-term consequences.”

A Special Note concerning our economic situation is found here

SPX at 1109.55 as this post is written

In his December 7 speech, Ben Bernanke made the following comments with regard to the role of The Federal Reserve.  For now, I will post an excerpt I found notable, and may comment upon it at a later date:

“In all of these efforts, our objective has not been to support specific financial institutions or markets for their own sake. Rather, recognizing that a healthy economy requires well-functioning financial markets, we have moved always with the single aim of promoting economic recovery and economic opportunity. In that respect, our means and goals have been fully consistent with the traditional functions of a central bank and with the mandate given to the Federal Reserve by the Congress to promote price stability and maximum employment.”

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SPX at 1113.69 as this post is written