Ex-Fed Official blasts QE and is long gold
Duncan Richardson, News Editor
24 Feb 2014, 10:56 a.m.
Andrew Huszar former Fed official and architect of the Federal Reserve’s first QE program has hit out against Feds response to the economic crisis. In an interview with Kingworld news Huszar discusses the Feds attempt to exit QE, gold, inflation and much more.
Although, Huszar believes the Fed was wright to step in and save the banks in 2008, he is extremely concerned that the Fed is still persisting with QE five years on.
“I don’t even think we have begun to see the costs of this experiment. And I think (that with) the Fed trying to exit from the buying phase, we are just in the third inning of a game where we really don’t know what the result is going to be”
Huszar also explains why he has a position in gold.
“I look at what the Fed has done basically since the beginning of the millennium, and I see a central bank that’s effectively been pumping cash into the market in different ways. I think on some level that initially helped feed the run-up in gold. But today why I am in gold is as a hedge against what I believe is going to be significant volatility down the line. I think over the long term gold is going to be a very valuable thing to hold as part of a portfolio. ... We could see some significant shifts in the way money flows in the U.S. and some real dangers to the US currency as a reserve currency. Obviously gold is a wonderful hedge for that possibility.”