In the debate among Federal Reserve policymakers over when and how the U.S. central bank will pull back from its massive bond-buying stimulus, Fed Chairman Ben Bernanke’s voice matters most. But his is far from the only one. Eighteen other policymakers also take part in the Fed’s policy discussions, and Bernanke has a track record of listening to them.
The Fed may offer more clarity on its intentions after its next policy meeting on June 18-19. Until then, what Bernanke and his colleagues say on quantitative easing bears close watching. The following are their views. Voters on the Fed’s policy-setting panel this year are marked with an asterisk (*):
NEW YORK (Reuters) – Former Federal Reserve Chairman Paul Volcker on Wednesday waded into the debate over when to reduce today’s ultra-easy U.S. monetary policies, arguing that the benefits of bond-buying are “limited and diminishing” and warning that central banks are too often late in removing stimulus.
Volcker, who led the U.S. central bank’s aggressive battle against inflation in the 1970s, said the decision to adjust policy will come down to good judgment, leadership, and “institutional backbone” in the face of political pressure.