'Your papers, please' must never be heard in America
A stable dollar and prices are consistent with maximum sustainable job and wealth creation. However, the Fed's dual mandate to pursue full employment and price stability has given it license to meddle in the economy to boost short-term employment, with disastrous consequences.
William C. Dudley, president of the Federal Reserve Bank of New York, who said that if the European crisis spirals out of control it could throw the U.S. economy back into a deep recession.
Mr. Dudley urged Washington to provide bridge loans to unemployed borrowers and more government-backed financing and taxpayer-paid principal reductions for underwater borrowers and suggested expanding Fannie Mae's and Freddie Mac's mission to include renting foreclosed houses.
