Fed official raises doubts over bond-purchase plan

[The Northerner]

WASHINGTON (AP) -- A Federal Reserve official with close ties to Chairman Ben Bernanke expressed doubts on Monday about whether the Fed's new $600 billion bond-purchase program would succeed in boosting the economy.

Kevin Warsh, a Fed governor, also warned of "significant risks" associated with the program, including the potential for triggering excessive inflation later on.

The Fed's program, announced last week, is intended to push interest rates on loans even lower than they are now. The Fed hopes cheaper loans will spur Americans to borrow and spend more. A stronger economy could, in turn, prompt companies to hire more and invigorate the economy.

But Warsh said he doubted the program will have "significant" or "durable benefits" for the economy. He made the comments in a speech to the annual meeting of the Securities Industry and Financial Markets Association in New York.

Read more: http://finance.yahoo.com/news/Fed-official-raises-doubts-apf-2689290458.html?x=0

[MadHound]

1. Yep, the Fed is setting us up for hyperinflation down the road,

Perhaps only a short ways down the road at that.