Dallas Fed President Richard Fisher said Friday on CNBC he opposed the Federal Open Market Committee‘s recent decision on employment thresholds and that he was extremely concerned that it would become increasingly difficult to exit the Fed’s accomodative monetary policy.
“We are at risk of what I call a ‘Hotel California’ monetary policy, referring to the Eagles’ song, where we can check out any time we want from this program, but we can never leave” due to an engorged balance sheet, he said.
I looked at the Cleveland Fed today´s release of their measure of inflation expectations. This is what I found.
Just imagine those are representations of short-run supply curves!
Seems that a lot of spending growth can be conjured before the 2.5% inflation threshold is reached.