QE is useless, says former Fed official

Quantitative easing isn’t working, former Federal Reserve official Andrew Huszar told CNBC yesterday.

Read: Who tapers — Ben or Yellen?

He says the program, which he was responsible for implementing, “was not at all useful,” and that QE is having unintended effects.

The markets have become dependent on bond-buying, and when it seemed the Fed might taper in the summer, they suffered, he notes. Now it’s unclear how the Fed will begin to taper without causing further turbulence.

In an editorial published Monday in the Wall Street Journal, Huszar called QE “the greatest backdoor Wall Street bailout of all time.”

“I can only say: I’m sorry America,” he wrote.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.