QE Didn’t Work, Says Ex-Fed Official

A video on CNBC’s Fast Money strikes at the heart of quantitative easing, the program by the US Federal Reserve designed to inject billions into US credit markets each month in order to free up lending and keep the American economy from falling back into recession.

The program hosts Andrew Huszar, a former official with the US Federal Reserve, who argues that QE, as it has become known, “was not all that useful”.

In an op-ed piece published in The Wall Street Journal, Huszar apologizes for his role in the program.

As quoted in the market news:

“I can only say: I’m sorry, America,” he wrote. “The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.”

Huszar told “Fast Money” that the bond-buying program, which was supposed to increase credit availability to consumers and businesses, didn’t do so.

“There was actually a net decrease in mortgage lending,” he said. “In fact, until 2012 mortgage lending was at a 15-year low.”

Read the full article on CNBC or watch the video here