Roach: Fed Should Tighten Now to Avoid Double Dip

The Federal Reserve should withdraw its massive stimulus soon, says Morgan Stanley Asia Chairman Steve Roach.

“There is never an easy time to do it,” he told Bloomberg.

“The longer they wait, the greater the chance they sow the seeds for the next bubble. So I’m in favor of an early exit strategy.”

The Fed has announced its intention to keep interest rates very low for some time.

“We’ve seen the most extraordinary monetary stimulus on record in the 15, 16 months post-Lehman Brothers’ (collapse),” Roach said. (more)