Volcker: It's Too Soon to Withdraw Stimulus

Monday, 15 Mar 2010 04:19 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
White House adviser and former Fed chairman Paul Volcker says it’s too soon for U.S. policymakers to withdraw the stimulus measures and interest-rate cuts used to fight the worst slump since the Great Depression.

“This is not the time to take aggressive tightening action, either fiscally or monetary-wise,” he said, pointing to “high” unemployment.

“So I think we have to, as best as we can, maintain the expectation that it will be taken care of in a timely way,” Volcker said in a recent interview with Bloomberg.

Volcker, whose recommendations inspired the restrictions on bank trading that President Barack Obama sent to Congress, said U.S. lawmakers must now prove they can pass the “comprehensive” legislation needed to prevent another financial crisis.

“That is the test,” said Volcker. “Congress has not been very good at passing any comprehensive legislation in various areas.”

Banking rules “shouldn’t be a matter of partisan dispute. But everything seems to be infected by partisan disputes in the U.S. now.”

“There is a lot of lobbying out there on the other side,” Volcker said.

President Barack Obama proposed the "Volcker Rule" in January as the administration sought new ways to crack down on risk and size at financial companies, The Wall Street Journal reports.

The White House wants to prevent companies with federally insured deposits from engaging in "proprietary trading," or taking speculative trading bets with the company's own money.

Meanwhile, the Federal Reserve is expected on March 31 to finish a yearlong program involving the purchase of some $1.25 trillion dollars of mortgage-backed securities, which has been widely credited with pumping up the housing market.

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Senate Politicizes Judicial Nominations

Friday, 18 Apr 2014 10:55 AM

With luck, Michelle Friedland, a highly qualified appointee to the United States Court of Appeals for the Ninth Circuit, . . .

Obamacare Needs to Be Fixed

Wednesday, 16 Apr 2014 08:52 AM

Obamacare should not be repealed, and it won't be. But it needs to be fixed. . . .

The Abortion Fight 40 Years Later

Wednesday, 02 Apr 2014 15:14 PM

It has been more than 40 years since the United States Supreme Court held in Roe v. Wade that a woman, in consultation w . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved