Former Federal Reserve Chairman Paul Volcker said central bank officials have the tools for reducing record monetary stimulus without causing a disruption.
“As the economy grows, they have the capacity to reverse in an orderly way what would otherwise be excesses,” Volcker said today at a conference in Washington sponsored by The Atlantic.
At the same time, policy makers face “the everlasting problem” of how to “begin tightening up soon enough when the economy is launching itself” in sustained growth, Volcker said.
To contact the reporters on this story: Cheyenne Hopkins at Chopkins19@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at email@example.com