Friday’s jobs report capped a week of mostly solid economic news, once again spurring chatter about whether and when the Fed will taper.
Ahead of the jobs data, I spoke with Roger Altman, chairman of Evercore Partners and former Deputy Secretary of the Treasury, about the outlook for monetary policy.
While acknowledging the “huge debate” over the efficacy of quantitative easing and the exit strategy to (presumably) come, Altman broadly praised the Fed’s efforts since the 2008 crisis.
“The Fed has done yeoman’s work,” he says. “The country is better off for the Fed having been as aggressive on monetary policy than if it hadn’t.”
Specifically, Altman cites the “considerable repair” to household balance sheets, thanks in large part to the recovery of the stock market and U.S. home prices. The ‘reinflation’ of those assets was “a very explicit goal of QE,” he says.
However, the investment banker does believe the Fed should declare ‘mission accomplished’ and reduce its accommodation because