Hawk to Dove, Trio of Fed Officials Says No to QE3
A trio of Fed officials — San Francisco Fed President John Williams, Atlanta Fed President Dennis Lockhart and Philadelphia Fed President Charles Plosser — spoke with unaccustomed unity in Santa Barbara on Thursday, summarily rejecting further easing unless the economy takes a turn for the worse.
The unity was all the more striking because the three represented the full policy spectrum at the Fed, from the dovish Williams, considered to be among the most employment-focused of Fed policymakers, to Plosser, one of the Fed's most hawkish members.
How quaint; hawk, moderate dove and dovish dove all come out with a unified message: No QE3. Translation: We have been scripted to feed you this pap (insert Outer Limits intro here... do not attempt to adjust the picture, we are controlling transmission...)
"Our policy is correctly calibrated," he said. "I'm not in favor of going to QE3 right now."
"I would not find QE3 a good policy choice," Plosser said, adding that a crisis in Europe or a sharp drop in inflation could trigger a change in his view, but that neither event is in his forecast.
"I'm in line with that," said Lockhart, who is considered a moderate dove. More easing is "a real option, but an option to be held in reserve for more serious circumstances than we now face," he said.