Not Everyone in the US Loves QE2

As a follow-up to Professor Gerard’s post, I  draw your attention to Tom Hoenig, President of the Federal Reserve Bank of Kansas City, who has been the lone dissenter on the Open Market Committee votes on monetary policy.  He fears the consequences of our short term reactive policy making.  His position parallels that of Raghuram Rajan, among others, who note that monetary policy has done all it can and that some of the potential consequences of further monetary easing are destructive both domestically and internationally.  The Chinese and the Brazilians aren’t the only ones yelling STOP!