I've said all along that I agree with Bernanke (and now Yellen) that QE was the exact right thing to do... BUT exit timing is going to be imperative and difficult.
Ironically I actually think the slow churn pace of the economic recovery is helping them. If we had had a Reaganesque recovery boom the exit/unwind timing would be much much harder to get right.
So what you really mean is that QE coupled with Obama’s anti-business policies is the right balance, no?
Otherwise, I suspect they’re going to get it wrong. We already have asset bubbles in specific markets. At the same time, I pity whoever is running the Fed. You essentially inherit decades of policy that deserves to be unwound, but isn’t politically feasible to do. Worse, you’re hostage to both Congress and the WH and their conflicting policies and meddling. I’m not unsympathetic individually to the Chairs’ challenges, but I think the FED just gives more cover to the politicians to ruin everything.
“BUT exit timing is going to be imperative and difficult.”
I agree it was the right thing to do but it’s a little like unprotected sex. Pulling out at the wrong time can have lasting consequences.