Dallas Fed President Worried About ‘Inflationary Tinder’

QE3 has finally ended, and in a speech to the Shadow Open Market Committee, president and CEO of the Federal Reserve (Fed) Bank of Dallas president and CEO Richard Fisher argues that we should hold off judgment on whether or not the extraordinary policy worked until we have seen it fully unwind, comparing the present situation to the end of Act IV in a five act play. Even though he would rather we not have had QE3 at all, if the exit is well-managed he can imagine it going down in history as a major success.

“The happy outcome to our economic predicament would entail the marriage of sensible fiscal policy with prudent monetary policy, carrying the American economy...