Dennis Lockhart: QE-2 Is Conditional...SAY WHAT!!

The Fed is not monetizing the federal debt

and is not purposely devaluing the dollar

(What happens when the Stock Market Manipulators Read This!!)

By Greg Robb

WASHINGTON (MarketWatch) --

11/16/10

The public should understand that the Federal Reserve's decision to purchase $600 billion in assets is subject to change if conditions warrant and will eventually be reversed, said Dennis Lockhart, the president of the Atlanta Federal Reserve Bank.

 Lockhart acknowleged that the Fed's decision to renew Treasury purchases has been controversial in the U.S. and overseas. "As is often the case in controversial policy matters, there are varying characterizations of decision makers' intent and even different interpretations of key terms and concepts" that foster "potential misunderstandings," Lockhart said in a speech in Montgomery, Ala.

The Fed is not monetizing the federal debt and is not purposely devaluing the dollar, he said. Lockhart said he didn't have outsized expectations about how much the bond purchases would help the economy. "I see it as a precaution aimed at reducing or eliminating downsides," he said "Also, it should reinforce, and accelerate somewhat, the growth momentum that is currently evident and, in my opinion, counter to some extent the strong headwinds the economy is facing," he said