The U.S. Federal Reserve needs to be more stringent for inflation, and greater independence from the government in this matter, the chief regional officer said the Federal Government, Charles Plosser. "To ensure tight control of inflation, the Federal Government must identify with its objectives," - said he. He also highlighted the cooperation of the Fed and U.S. Treasury, the responsibilities of each regulator, and the establishment of the independence and well-coordinated operation. "During the struggle with the economic crisis, it is necessary to preserve the independence of the Federal Government and with the guarantee of transparency of monetary policy," - he said. The primary role in conducting monetary policy Plosser took the Treasury, while the Federal Government should provide sufficient transparency in the conduct of monetary policy. Plosser also caused discomfort when the Fed started to stabilize the financial system by providing a low cost of borrowing and carrying out various programs, providing liquidity. The cost of such measures was extremely high, which may cause loss of independence of the Federal Government. "We must divide the monetary fiscal policy. The federal government should not acquire the status of compulsory reserve funds when the Congress or the Treasury can not solve any problem," - he added. Plosser also said the growth of inflationary risks in the long run due to large-scale government action. The growth of inflation expected them to point to 1.2% this year, growth will continue until 2011, and an average of 2.5%. The risks of deflation, in his view, overvalued, the U.S. economy over the last month, gives stable signals the completion of recession, expectations of the market recovery is not unfounded.
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