Reports indicate that although the Federal
Reserve's final vote on the newest effort to prime the pump showed only
one dissenter, there was much wider concern among the members over the proposed
(now approved) bond purchases. Call it TARP One or Two, under the Bush
administration or the stimulus and now quantitative easing under the present
administration, it is all a Keynesian styled effort to revive a falling
economy by pumping more money into the system.
"Federal Reserve policymakers clashed over the benefits and
risks of launching a $600 billion program to rejuvenate the economy, but voted
for it anyway, according to minutes of their closed-door deliberations released
Despite a near unanimous 10-1 vote in support of the
program, the minutes from the Nov. 3 meeting show that some Fed officials had
concerns about embarking on a second round of stimulus. The minutes also reveal
that the Fed held a secret meeting in mid-October to talk about its
Some officials thought the additional purchases of
government debt would have limited effect in revving up the economy. Some also
worried about risks - unleashing inflation or causing a destabilizing slide in
the value of the U.S. dollar.
In the end, Fed Chairman Ben Bernanke persuaded all but one
of his colleagues to back the plan. Thomas Hoenig, president of the Federal
Reserve Bank of Kansas City, was the sole dissenter."
Here is a link
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TexasLawyerBlog.com, a blog by Michael McBride.