More from George: More from George: in Q&A the Fed hawk said the FOMC is focused especially on "being transparent." The Fed will need to exit stimulus without sudden rate increases. Analysts don't think sudden or large rate increases will be an issue for the markets for quite some time given the criteria for rate hikes and the Fed's openness. As Chairman Bernanke and others on the Fed have indicated, she does believe the U.S. needs to address the "too big to fail" issue, but Dodd-Frank legislation really hasn't done the trick.
More from George: More from George: the lone FOMC dissenter remains concerned the current policy stance poses long term risks. And she worries the near-zero rate posture is creating incentives for investors to reach for yield. The Fed's large balance sheet also risks boosting long term inflation expectations. Nevertheless, she doesn't believe higher rates are needed currently. But when rates are raised, it's likely to be a "painful adjustment" process. She'd be against expanding asset purchases at this point as it could lead to "complications."