Eisenbeis Says Fed Officials ‘Wringing Hands’ Over Employment

Federal Reserve officials meeting in Washington today and tomorrow are “wringing their hands” over the U.S. employment situation and are “awfully gun-shy” about undertaking a third round of quantitative easing, said Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc. in Sarasota, Florida.

“Shrinking that balance sheet when you’re loaded up with the kind of assets they’re loaded up with won’t be easy,” he said in an interview today on the Bloomberg Radio program, the “Hays Advantage” with Kathleen Hays. “The more they engage in these purchases, the harder the exit will be.”

“When you’ve dug yourself into a hole, the first thing you do is stop digging,” Eisenbeis said.

To contact the reporters on this story: Vivien Lou Chen in San Francisco at vchen1@bloomberg.net; Kathleen Hays in New York at khays4@bloomberg.net

To contact the editor responsible for this story: Chris Wellisz at cwellisz@bloomberg.net

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