Finally. Something of a little monetary clarity from the Fed. Quite a dramatic set of admissions really.
The below are statements we’re just getting across the wires from the Fed’s second in command, Vice Chairman Donald Kohn. Kohn was giving a speech on the role of the central bank and monetary policy in curbing asset bubbles at the Cato institute. Looks like he’s taking questions.
*DJ Kohn: Econ, Financial Woes Likely To Persist ‘For A While’
*BL Fed’s Kohn Says Crisis `More Severe’ Than Episodes Since 1990s
*DJ Fed Kohn: Doing Both Monetary Policy, Quantitative Easing
*DJ Kohn: No Reason Fed Can’t ‘Blow Up’ Size Of Balance Sheet
* RTRS-Kohn says Fed has acted on the “fuzzy border” between monetary and fiscal policy
*RTRS-Kohn says paying interest on reserves hasn’t worked as well as expected to control Fed funds rate
*RTRS-Kohn says fluctuation of Fed funds rate reflects strains in system
*DJ Kohn: US Economy Declining
Related links
If all else fails, devalue the dollar – FT Alphaville
The unthinkable has happened – FT Alphaville
Fed capitulates, the central bank is broken – FT Alphaville
The unthinkable – FT Alphaville